A Fed That Cares
Have you ever read the old mission statement of the Federal Reserve? It was short and sweet, and stated that the Fed’s mission was “to foster the stability, integrity, and efficiency of the nation’s monetary, financial and payment systems so as to promote optimal economic performance and maintain public confidence.” That was it. The mission statement has since been amended and a few things added including: “…conduct the nation’s monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment….” How it accomplishes that mission and the oversight for which it is held accountable remains fuzzy. Since the start of the “Great Recession”, and the near collapse of the banking system, the Fed has acted masterfully in making certain that those payment systems did not break down, and that public confidence was maintained. Confidence was maintained even as firms like Bear Sterns and Lehman Brothers, and countless numbers of community banks, were being shuttered. Good job Fed – but now the latest Fed Chairman, Janet Yellen, appears to be developing a new focus.