This week, President Obama named Stanley Fischer, former governor of the Bank of Israel, to serve as vice chairman Friday of the U.S. Federal Reserve board. The president named Lael Brainard, one of his top economic advisers, to serve as a governor of the fed and nominated Jerome Powell to a second term, According to UPI.
“Stanley Fischer brings decades of leadership and expertise from various roles, including serving at the International Monetary Fund and the Bank of Israel,” Obama said. “He is widely acknowledged as one of the world’s leading and most experienced economic policy minds and I’m grateful he has agreed to take on this new role and I am confident that he and Janet Yellen will make a great team.”
Brainard served as treasury undersecretary for international affairs from 2010 to 2013. Powell, who was first named to the Fed board in 2012, was a treasury official in President George H.W. Bush’s administration.
Many people believe that the Federal Reserve is an organization that operates as a public service. There are not many out there who realize that this is a for profit business. Last year the federal reserve reportedly made 90 billion dollars.
Marketplace.org reported that:
“While leaders in Washington stare down the fiscal cliff, let’s not forget the fiscal fact that brought us to the edge: The annual U.S. government deficit of more than a trillion dollars. But through it all, one government-related entity has been hauling in record surpluses. New data capture the scope of profits at the U.S. Federal Reserve, estimated to be $90 billion this year.”
“The last five or six years their profits have roughly tripled,” says Allan Sloan, senior editor-at-large at Fortune Magazine.