AgentIndustry News

‘Do not underestimate the power of the Fed’

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

There will be many turning points in this first global recession of the modern era, but this week marks one of the good ones. The players: the Fed, the Obama administration, and maybe, just maybe ... the bankers. The Fed is a central bank. All nations have one, each with one unique capability: the authority to print money. In normal times, central banks print money cautiously but routinely through the banking system -- draining in good times, increasing in recessions. In one corner of the Fed's giant conference room hangs an imaginary but thick, red, silken rope. The kind of thing a Victorian might have used to call the butler. However, the imaginary one at the Fed has a huge, red, steel handle on the end. Since 1913, everyone visiting that room has known the rope and handle hang there, but no one ever talks about it, and all avoid even glancing at it. Last Wednesday, Fed Chairman Ben Bernanke pulled the handle. In extremis, in a flat-out national emergency threatening econ...