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 (6/18-6/24)
25 photos Launch gallery
1. Me & the homie @jaleelwhite #RujohnFoundation Happy to be in Jamaica! Good times
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5. Good Morning. Early day in Detroit! Making press rounds for @thebossnetwork's Ladies That Lead Tour. Thank you @traycemadre and @colourbynumbr for my glam.
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6. POWER the best show on TV @djenvy, Queens we so big out here. #EFFENVODKA #FRIGO
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7. They said u lost a step, wasn't explosive as once was, the best days was in the real view, questioned your drive, your leadership, your commitment, you don't have killer instinct, going back home is the worst mistake in your career, he got the coach fired, players traded, won't work between him and Kyrie, Him and Kev won't work, love your teammates to much, there's no way he can deliver a championship in his hometown, etc etc etc.... But guess what THATS NONE OF MY BUSINESS #StriveForGreatness #ThisOneIsForTheLand #PutSomeRespeckOnMyName Hahahaha!!! Yes sir
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8. Oooooh weeee this man right here is responsible for at least three of our four babies!! #JOE ❤❤❤🎤 #rnb #king #voicelikebutter #ForPeetesSake
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9. Hanging with my @abcnetwork family! @abcunclebuck tonite y'all check us out ! @anthonyanderson @traceeellisross
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10. My broski ( @sayeedshahidi ) and I are on Top 5 Live on @go90 at 5 (which is super duper close)! Make sure to tune in :) #UncleBuck #Blackish
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11. Lights out💤 #GoodNight
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12. Late nights mornings
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13. Ran into the lovely talented @siedahgarrett on this brutiful favvuz deh!
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14. #halal #love #thedargans #kattwilliamsSHOW #mashallah when that Jennah piece HIT!! @sweetjennahcollection glasses by @baddieglamaccessories LIZ 😍 @dynamiteko top @dazzledmv and jeans @thevision414 and shoes: @louboutinworld
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15. Big Hair and Optical Illusions #OceanDrive #MiamiLiving #coverparty
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16. MAMA and THE SAVAGES ... ⚓️ #supportyourlocalgirlgang
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17. From the bottom of my ❤️, thank you new followers & old! & hello fellow night owls! #grateful #racheltrue #naturalhair #curlyhair #curlygirl #healthyhair
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18. I feel so grateful because I met these amazing young minds, visiting from Houston TX, during their college tour stop today at #usc.These students are ALL extraordinary and embody academic excellence so I'm humbled to have shared a few moments with them to applaud and celebrate their bright futures ahead! Thank you @EmergeFellows for inviting me to speak and blessing me with your love and attention this afternoon!
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19. Happy Fathers Day Pops. U taught me how to be a man. Lessons of love, hard work & gratefulness. Sorry the fishing didn't stick. LOL. I Love U!
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20. Sky Zone and Ice Cream! Best Fathers Day Ever!! Photo credit @mariahcarey
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21. Look what finally came in the mail 😎 #mtvmovieawards2016 💥+🌽! #straightouttacompton
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22. Claudia Jordan: ....
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23. 'Member that time I almost knocked a bajillion dollar camera off the car? Really? Yeah, me neither! #Greenleaf Episode 2 comin atcha!
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24. Full of love. #birthday #Cabo
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25. Oh hey! Look who just joined Snapchat
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