After the latest Federal Reserve Meeting, Chairman Ben Bernanke gave a press conference at which he said something worth commenting on.
I think the best way to address inequality is to create jobs. It gives people opportunities. It gives people a chance to earn income
, gain experience and to ultimately earn more. But that’s an indirect approach that’s really the only way the Fed can address inequality per se.
I think it would be helpful if we could get assistance from some other parts of the government to work with us to help create more jobs.
I agree with this statement wholeheartedly. And ordinarily I would be harping on the last sentence where he implores Congress to use it’s fiscal capacity to create jobs. But I also want to note something else in that last sentence. ”…it would be helpful if we could get assistance from some other parts of government…”
So there’s an admission there that The Fed is part of the Government of the United States. Many people believe the Fed is a private bank. That’s not the case, even if their board of directors is made up largely of directors from Private Banks. In another post I will talk about looking at Government finances by looking at the combined finances of the Central Bank and the Treasury. You have to look at them both to see the whole story. For now it’s enough to know: The Federal Reserve is part of the Government and statements from The Fed Director say so.