A lot of people know that Ben Bernanke is the Chairman of the Federal Reserve, but what does that mean? What is his job and why is it so important?
Here’s the sneaky truth—probably not all that many people really understand his job, and maybe we’re all afraid to admit it. But we shouldn’t be. It’s a complex if important job. Bernanke as Chairman leads the Federal Reserve, but what is the Federal Reserve? The technical answer is it is the central bank of the United States—or put more simply, it’s the government’s bank. Think of it this way: you, I, and many others each have a bank. The bank is where we put our money, the bank helps us manage our money with savings and checking accounts, and we can borrow money from our bank. Well, the Federal Reserve essentially performs these functions for the government. There is also one big thing a central bank like the Fed does. It manages a country’s currency—the Federal Reserve decides how much money is out there and sets the government’s short-term interest rates.
Why does he always talk about inflation and unemployment and all of those things? How does that fit into his job?
Think of it this way, your banker knows a lot about your financial health and can tell you at any time. So for a country, think of inflation and employment as key measurements of financial health. Low inflation—that is, stable prices—and low unemployment are good. High inflation—or skyrocketing prices—and high unemployment are bad. Just like your banker would prefer your financial health to be good, the Fed wants the United States to be strong financially. Those two things I’ve mentioned, inflation and employment, are in fact the Fed’s two key mandates. All of the complex things that the Fed does—they have crazy names like QE2 and Operation Twist—are ways to achieve those goals.
How is the Fed going to help the average American?
Perfect. Big picture: a healthy U.S. economy is what everyone wants. We all know that the economy is not growing as fast as we would like, which is keeping unemployment high. So the main tool the Fed is using right now is interest rates: the Fed is keeping them extremely low. Technically they control only government rates, but all rates really depend on those. So low rates make it cheaper to borrow money—to buy a car, to buy a house, to start a business, whatever. Low rates should spur growth. Growth creates jobs—which obviously lowers unemployment. So if you don’t happen to have a job, growth will help you get one. If you already have a job, growth will help your paycheck increase. So if Bernanke is reading the economic signs correctly, and he implements the right policies, we should see growth and falling unemployment. Personally, I happen to think he’s doing really well with a tough job.
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This Week’s Celebrity Instagrams (11/26-12/2)
30 photos Launch gallery
1. Little Legend and Puddy 😍😍😍😍
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2. "You on point Phife?" "all the time,Tip". 💥 #bannedfromnormal
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3. Vegan! The Impossible burger at Crossroads
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4. Lawrence #BeforeandAfterEpisodes 1-4: 184lbs 13% body fatEpisode 8: 196lbs 8% body fat S/O @coachdaveboxing with the works outs and @kildareriordan with the nutrition
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5. Jus haaaanngin out
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6. Meanwhile back at home in Atlanta GA someone mad they not on the 🛳. 😳
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7. No limits... Photo cred: Chris Bridges @ludacris
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8. new new
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9. Apparently my 260lbs is too much for the actual vines in the Hawaiian jungles to hold me without breaking and me falling hundreds of feet. So for safety purposes, I'm forced to swing thru #Jumanjj on wires strong enough to hold 12 adult buffaloes and 1 adult Rock. #OnSet #Jumanji #IronicallyIEatBuffaloDailyForLunch #MoreManThanNatureKnowsWhatToDoWith
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10. hey ma! 🎎#wcw 💙
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11. Surprise visit to our factories!!! #GoodAmerican #USA
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13. Peachy Keen 🔥✨⚡️
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14. If this don't look thankful I don't know what does. Happy Thanksgiving to you and yours. #UltraBlessed #24kMagic #SweetPotatoFly
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15. Late nights @nbcmarlon with the writers... we in here!!!
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16. There goes my baaaaaaaaabbbbyyyyy #QueenKingMagic!!! We're up to something! Ira BIG!!! Stay out our buisness -
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17. You want to win every game you play but when you come home to these faces... who cares. #ILoveYouGirls best part of my day, everyday!
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18. Steady,steady..... full size jenga.. "I got this one "???? Or do I ?
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19. Cornrows kind of day 😉@dontaysavoy2 you convinced me and I love. ❤️️
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20. #BrotherlyLove #tbt
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22. #basel #TeamLOVE @kingcombs
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23. Just introduced a special screening of @directher 's groundbreaking (must see) documentary @13thfilm with my brother @themichaelealy | @unitedblackout #blackoutblackfriday
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24. Me & Vanessa Williams giving #DuckLips #Pose on the set of #DaytimeDivas @vh1 - Coming Soon to a tv near you. Lol. - My make up done by @makeupsurgeon
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25. This picture just makes me wanna praise the Lord, you hear me!!!!!! Yes Lord brotha #TEDDYCAMPBELL What a #man !!! You are everything right on this picture husband ......... #gorgeous #stylish #classy #strong #masculine #king #sexy #debonair #gentlemenstyle And that #bible in your hand just seals the deal for me (probably cause i know that, that is what helped you become just as amazing as you look😘). While my heart and mind experiences the goodness of God at #church on Sundays, my eyes experiences the goodness of Teddy😍. Amen somebody🙌🏽. "Bless the Lord oh my soul and all that is within me bless his holy name" #myman #myhusband #goodman #blackman #dapperman #godlyman #goodfather #mybestfriend
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26. Yesterday was my mama's 53rd birthday!!!!! Got to celebrate with her all day. If this is what I have to look forward to I can't wait. Looking like a soft bucket a cocoa butter. Yaaaaaaaaaas! 😍😍😍 love you mommy!
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27. "Shout out to @PureAtlanta for getting the family right"....I'm loving this jogger. 😍😍
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28. This pic warms my heart ❤️ #myLogiebeans and aunt aunt umba @itowandabraxton 😘
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29. You will always be my baby😜. #HappyBirthdayReginae #mybaby18
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30. GC "Gods Child" Red on Red SweatSuit available now at www.MonicaApparel.com ... Take Your Crown wherever you go!! I'm pictured in a Medium... Go to the site now for other options ... cc: @trukernell
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