Central banks are shrouded in secrecy and few understand how they operate. These institutions handle economic matters that we’re told are far too complex for average people to understand.
The Federal Reserve’s secrecy originated from its inception, when created by a group of elite men using secret code names at a place named Jekyll Island a century ago. No doubt at least one mustache was twirled mischievously. Of course the day to day of monetary policy is far less thrilling, but that doesn’t mean the consequences of these bankers’ actions are any less dramatic.
A decade after the latest financial crisis — fueled by the cheap money policies of former Fed chairman Alan Greenspan — low interest rates and “quantitative easing” have continued to inflate what Donald Trump once rightly called a “big, fat, ugly bubble.” The monetary policies that the Fed imposes bring significant harm to many Americans who are impacted by the whims of bureaucratic economists with unchecked egos.
For all the secrecy afforded to the Fed and other central banks, most of these decisions are made in plain view of the public, enjoying the protection that comes with dreadfully dull technical language of modern economics. For an example, look no further than the nomination battle going on right now over Marvin Goodfriend to the board of governors.
