The current chairman of the Federal Reserve is Ben Bernanke, he is jointly responsible for the conducting the nation’s monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices (Chairman, n. d. ). He also supervises and regulates banking institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers.
Mr. Bernanke also maintains the stability of the financial system and containing systemic risk that may arise in financial markets, and providing certain financial services to the U.S. government, to the public, to financial institutions, and to foreign official institutions, including playing a major role in operating the nation’s payments systems (Responsibilities, n. d. ). Mr. Bernanke has no constitutional authority, however his opinion on the economy and the value of the U. S. dollar or assets are valued greatly up on Capitol Hill (Hamilton, 2010). Immediately after the new administration took over the White House, there were several acts that were passed by the Congress, and signed by the new President.
These legislations will help keep the economy on track and reverse the years of irresponsibility of the federal government and the banks (Economy, n. d. ). These acts will also help average citizens keep their homes and their current jobs. Most of these acts will help create millions of jobs and help small business by giving them tax breaks. They will also monitor the Wall Street and banks to make sure they are being held accountable for their actions to the average citizen.
As each of the key players had their own opinions about the different policies that make up the way they run the economy, they came together to form amendments to the monetary policy, fiscal policy, and laws governing businesses since the collapse of the economy. The only change that was made to the monetary policy is that they will reinvest principal payments from its securities holdings. The changes to the fiscal policy include tax cuts for some and freezing the pay of government employees. There were many laws that were put into effect to govern businesses and their hiring practices and other items as far as how they were ran.
Each of the key actors are responsible for the enforcement of these acts or bills and monitoring of the other key people to make sure that no one taking advantage of the system and the new bills. Each of these acts, I feel are strong and will help to give the economy the boost that is required to help it get stable. I know that a lot of people feel that it is not helping, but I like to remind people it took us more than 10 years to get into the mess that we are in. No one can expect for the current situation to be gone in less than 2 years.
I do however; believe that the federal government should not have bailed out the homeowners. These individuals knew that they could not afford the homes before they bought them, and after the economy got bad they expected someone to give them a handout. The only thing that I can see as a weakness for any of these policies is the enforcement of them. Each policy is unique, but each has to be enforced in a certain way. Although I am glad to see the economy doing a bounce back, I am more concerned that the citizens will not give our government enough time to make sure it is stable again.
Everyone is so set in blaming the President for the economy, when the only people that really need to be blamed are we. In conclusion, I feel that each key player has their own set goals on where they would like to see the economy, but are willing to do whatever is necessary to stabilize the economy. I also think that each policy has been set up to help boost the economy back to its original place since if the U. S. economy is experiencing difficulties then the world economy will be faced with its own problems.
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Chairman. (n.d.). Board Members. Retrieved March 18, 2012, from The Federal Reserve website: http://www.federalreserve.gov/?aboutthefed/?bios/?board/?bernanke.htm
Constitutional Powers of the President. (2003). Constitutional Powers of the President. Retrieved March 18, 2012, from CQ Encyclopedia of American Government database.
Economy. (n.d.). Retrieved March 18, 2012, from The White House website: http://www.whitehouse.gov/?issues/?economy
Hamilton, J. (2010, January 1). Bernanke grades the Fed. Newstex Blogs (USA) n.pag. Retrieved March 18, 2012, from News Bank on-line database (Access World News)
Krugman, P. (2009, March 3). Revenge of the ‘Glut’. Record-Journal (Meriden, CT) 18. Retrieved March 18, 2012, from News Bank on-line database (Access World News)