The Federal Reserve is about to usher in its first female chairman. 10 year 10 9, Janet, the 67-year-old vice chairman of the Federal Reserve? Yellen was nominated by Obama and will be the chairman of the Federal Reserve in June 5438+10 next year.
As soon as the news was announced, the media immediately began to analyze her: dove position; Participate in the formulation of policies; Deep academic foundation, her husband won the Nobel Prize in Economics; A wide range of research fields. Others compared the height of the chairman of the Federal Reserve with the annual return rate of the Standard & Poor's 500 Index, and found that they were positively correlated, thus questioning Yellen.
Considering the position of the chairman of the Federal Reserve, no detailed analysis can be excessive. As the decisive figure of American monetary policy, the chairman of the Federal Reserve is called "the second most powerful person in the United States". 1996 On the eve of the US presidential election, the cover of Fortune magazine printed this sentence: "It doesn't matter who is the president, as long as Allen (Greenspan) continues to be the chairman of the Federal Reserve!"
Chairman of the Federal Reserve Private Bank "Boss"
As the central bank of the United States, the Federal Reserve System is actually a private bank.
The Federal Reserve was founded in 19 14, proposed by J.P. Morgan, a financial tycoon at that time, and was composed of 12 regional private banks distributed throughout the United States. The main tasks of the Federal Reserve are to manage and supervise the banking industry, implement monetary policy by buying and selling US Treasury bonds, and maintain the payment system. Although the Federal Reserve is a private bank, its responsibilities are no different from those of central banks in other countries.
The highest authority of the Federal Reserve is the Federal Reserve Board in Washington, D.C. This board can decide the presidents of 12 regional federal reserve banks, and even their salaries. Their core job is to formulate monetary policy.
The "chairman of the Federal Reserve" refers to the chairman of this board of directors, which can be said to be the core of the power core. Although the chairman and other directors have only one vote in deciding monetary policy, the chairman can "guide" everyone to agree with his views when presiding over meetings and drafting proposals. In addition, the chairman also advises the president on economic policies, testifies on the economic situation in Congress, and sometimes negotiates with foreign countries on behalf of the United States.
Candidates for such an important position are nominated by the president and approved by the Senate, and the process is very cautious. Take the current chairman Bernanke as an example. Nearly a year before taking office, Cheney, then vice president, began to lead the working group to find candidates. After several rounds of screening, the working group finally determined the list of five people and conducted an interview in the vice president's office. In the end, Bernanke fell in love with George W. Bush and became the chairman of the board of directors in 2006.
Difficult "Fed Language"
Every move of the chairman of the Federal Reserve has attracted much attention. In order not to affect the market, successive Fed chairmen have tried to avoid publicly commenting on the capital market and economic prospects. This also forced them to cultivate a set of "Fed language". Greenspan is famous for his style of "keeping his mouth shut and failing to convey his meaning". He also famously said, "If you think you have accurately understood what I said, then you must have misunderstood what I said."
Bernanke, who spoke bluntly, later learned this abstruse "Fed language".
There are other ways to interpret it. An American TV station once said that every time the Federal Reserve meets, it will send two film crews to watch the door. One camera shoots Greenspan's speech and behavior, and the other camera shoots his briefcase. If it is very thin, it means that the interest rate will not be adjusted. It is often Greenspan who has something to say.
Who is in charge of the Federal Reserve?
Theoretically, the Fed will take care of it when it returns to China.
The Federal Reserve was created by Congress, and the law stipulates that the latter can stop issuing business licenses to the Federal Reserve, but the probability of this actually happening is very low.
Another reason why Congress hardly interferes with Fed policy is that most members don't know how to do it …
As for the president, although he can nominate seven directors, he can't control them. In order to limit the president's control over the Federal Reserve, the term of office of directors can be as long as 14. The president has stepped down and the directors may still be there. In this way, directors can ignore short-term pressures (such as boosting the economy before the election) and make longer-term scientific judgments.
However, the study also shows that whenever the government changes, there will be some changes in the Fed's policies, and this change coincides with the idea of the new president. Especially in the economic crisis, the Fed often keeps pace with the White House and the Ministry of Finance. It is easy to explain that the fundamental goal of the Federal Reserve and the White House is actually the same: to improve the economy.
However, the "No.1" and "No.2" power figures in the United States occasionally conflict. Greenspan once said that his relationship with George H.W. Bush was so bad that the latter shouted to himself in public: "I must reduce interest!" " Now! Greenspan said he was shocked because no one spoke to the Fed like that.
The president also has an "ultimate weapon". I can't interfere with your policy making, but I won't nominate you at the end of your four-year term. This year, Obama said publicly: "I think Bernanke has been chairman of the Federal Reserve for longer than he thought." This sentence spread all over the world, and everyone believed that Bernanke would be "fired".
Sure enough, Yellen came.