It is with great pride that I introduce MONEY STRONG. After nearly a decade at the Federal Reserve, I find myself compelled to help educate large and small investors alike about the inner workings of the institution that so captivates the media and Fed watchers. My goal is to shine a bright light on how policymaking within the Fed directly affects not just those on Wall Street, but every citizen of this country, and for that matter, the world.
We stand today at the precipice. Will the Fed ever normalize interest rates? What of other central banks trying to counter any potential tightening? Will there be consequences for this $12 trillion global experiment?
Perhaps what resonates with me most is that nearly 30 years on, since the birth of the Greenspan put, so few lessons have been learned. Money is strong when grounded in investment in the future. But it is weak when built on the shaky foundation of cheap debt.
We’ve been told to look away from the mystery of the Fed. The assumption is that the best interests of the country are safeguarded by this enigmatic group of brilliant academics. But our very destiny hinges on resolving to understand how Fed policy allows our politicians to abdicate their commitment to make the hard decisions that keep the country on a sustainable path to prosperity.
Public pension systems at risk, unaffordable housing, malinvestment, rampant financial engineering by America’s companies, stagnant wages, skyrocketing student debt, millions who have dropped out of the labor force, chronic asset price bubbles. All of these ills lay at the feet of the Fed, which has essentially become the fourth, and most powerful, branch of the U.S. government.