News for hackers. Stuff that matters.

A comment on Coordinated central bank action to enhance the provision of US dollar liquidity.

Re:Coordinated central bank action to enhance the provision ... by throwaway20222 on Sunday March 19, 2023 @11:02PM (#35226754)
Not an economist*

Also a problem is that the primary lever we seemingly have to impact the economy is the feds manipulation of interest rates, but what happened to taxes? The have been so politicized that all is left is the wide scatter shotgun effect of rate changes.

[ Parent | on HN ]
Re:Coordinated central bank action to enhance the provision ... by Ancalagon on Sunday March 19, 2023 @11:29PM (#35226912)
The FED is not a part of the federal government. They are completely separate entities.

The FED can set interest rates.

The federal government can set taxes.

And there is no overlap of those powers between the two.

[ Parent | on HN ]
Re:Coordinated central bank action to enhance the provision ... by throwaway20222 on Monday March 20, 2023 @12:35AM (#35227328)
Yes. But those both impact the economy directly, correct?

The federal government can also spend which impacts it as well.

I appreciate they are separate, but they are intertwined and one has become politically untenable.

[ Parent | on HN ]