It Could Happen Here Why the Federal Reserve Crisis Matters
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Jan 22, 2026 Mia Wong dives into the intriguing complexities of the Federal Reserve, explaining its pivotal role in the global economy. She tackles the potential dangers of political interference, especially under Trump's influence. Discussions include the Fed's structure, its unique quasi-public nature, and how it manages money supply and interest rates. The stakes are high as she explores the implications of appointing figures like Stephen Miran and the historical ties between money and war finance. It's a captivating look at the crucial intersection of politics and economics.
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Fed's Hybrid Structure Concentrates Power
- The Federal Reserve is a hybrid public-private institution whose structure causes confusion about its authority.
- Its unique design concentrates immense economic power in a technocratic system separate from direct presidential control.
How The Fed Really Controls Rates
- The Fed controls money creation and the effective federal funds rate, which shapes borrowing costs across the economy.
- Manipulating interest on reserve balances is the Fed's technical tool to guide overnight banking rates.
Why Fed Independence Is The Red Line
- Fed independence determines whether technocrats or the president set macroeconomic policy.
- Losing that independence hands political actors direct control of the economy's most powerful levers.
