Stubborn Political Science Professor "The Fed is Public Because it's Public"

[ravedown]

recently i was asked where the interest the fed receives from lending money goes, and i totally couldn't recall. anyone know the answer?

 

[MaxPower]

Actually, it's a hybrid. It was created by legislation, must answer to Congress and follow rules created by Congress, and could be dissolved by Congress at any time. And its Board is appointed by the Federal government. But it is composed of private banks. So it is a hybrid of public and private elements.

I like the term "quasi-private."

 

[Seraphim]

I like the term "Fascistic-communist-authoritarian-shit-soup-medley".

I like the term "quasi-private."

 

[Salvial]

Fixed the op.

He consistently said it was public "until it's privatized"

 

[DamianTV]

I like the term "Fascistic-communist-authoritarian-shit-soup-medley".

Exactly right!

 

[emazur]

recently i was asked where the interest the fed receives from lending money goes, and i totally couldn't recall. anyone know the answer?

They pay it back to the Treasury minus the Fed's operating costs (and for reasons I don't entirely understand, sometimes the Fed returns more to the Treasury than was originally borrowed even after operating costs, and the Fed says the government actually made a "profit")