The Federal Reserve conducts specific responsibilities to ensure a healthy economy of the United States. Among the essential functions, it engages in is promoting stability of the financial systems. In the United States, the financial system can only be termed as stable if the markets and the financial institutions' issue people resources and services that they can invest in as well as make them benefit from an economy. The fed accomplishes such initiatives by monitoring the connection between savers, borrowers, businesses and investors both who are abroad and within.
From a survey in CNBC that was published on Monday, 29 th April in this year, it is evident that the feds are in search of a new program which could result in another version of the quantitative easing. The officials of Federal Reserve are considering implementing a program that will grant banks the opportunity to exchange treasuries in position for reserves. This move aims to ensure liquidity, especially in difficult times, an initiative that will also assist the central bank in reducing the approximated size of $4 trillion that is accounted in the balance sheet. Even though some people are in support of the plan, others have criticized itclaiming that it will be more dangerous since it can interfere with the financial markets.
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The article on quantitative easing comprehensively supports that the chair of Federal Reserve appears to be the most influential in the United States and most probably the world. The Federal Reserve seems to be the central bank in the United States. Most decisions implemented by the federal service, have a significant impact on the economy of the United States, as well as the entire globe. Such positions favour it to be the most influential actor in the economy across the world. Being an independent agency, it turns out to be highly suspicious to most individuals since it is neither subject to shareholders nor voters.
