the federal reserve got its authority from congress originally.
the federal reserve got its authority from congress originally.
which body does the federal reserve get its authority from originally?
congress
while johnson supported ending the federal reserve when questioned about the issue in an online town hall, johnson only mentions three reforms of the federal reserve on his website: "conduct an audit to provide true transparency of the federal reserve's lending practices", "establish clear congressional oversight", and "get the federal reserve out of the business of printing money and buying debt through quantitative easing." in a youtube interview, he says, "the federal reserve's original mandate was price stability. added on to that was unemployment, or [rather] employment, which i think are at odds with one another. [the] federal reserve and central banks should be about a strong u.s. dollar and not a weak u.s. dollar. that's what we have. we have zero percent interest rates, because let's face it. if we didn't have zero percent interest rates right now we would be in the midst of that monetary collapse because of the debt that americans hold and can't repay." gary also has stated that the federal reserve is not a private entity. "we own the federal reserve. there is this misconception that the federal reserve is a private entity."
political positions of gary johnson
the federal reserve banks have an intermediate legal status, with some features of private corporations and some features of public federal agencies. the united states has an interest in the federal reserve banks as tax-exempt federally created instrumentalities whose profits belong to the federal government, but this interest is not proprietary. each member bank (commercial banks in the federal reserve district) owns a nonnegotiable share of stock in its regional federal reserve bank. however, holding federal reserve bank stock is unlike owning stock in a publicly traded company. the charter of each federal reserve bank is established by law and cannot be altered by the member banks. federal reserve bank stock cannot be sold or traded, and member banks do not control the federal reserve bank as a result of owning this stock. they do, however, elect six of the nine members of the federal reserve banks' boards of directors. in "lewis v. united states", the united states court of appeals for the ninth circuit stated that: "the reserve banks are not federal instrumentalities for purposes of the ftca [the federal tort claims act], but are independent, privately owned and locally controlled corporations." the opinion went on to say, however, that: "the reserve banks have properly been held to be federal instrumentalities for some purposes." another relevant decision is "scott v. federal reserve bank of kansas city", in which the distinction is made between federal reserve banks, which are federally created instrumentalities, and the board of governors, which is a federal agency.
structure of the federal reserve system