Manage episode 306862057 series 1538187
As the U.S. Federal Reserve and its chair, Jerome Powell, confront concerns over inflation and the impact of the Fed’s pandemic-era policies, we take a deep dive into the country’s central bank, which financial journalist Dion Rabouin calls “the most powerful and least understood institution in the country.”
James Jacoby, a producer of the FRONTLINE documentary “The Power of the Fed,” and Rabouin, who was featured in the film, join FRONTLINE Executive Producer Raney Aronson-Rath for a conversation about how the Fed’s actions to avert crisis when COVID struck were the latest chapter in an experiment the Fed began after the 2008 crash — one that has dramatically changed the American economy. Jacoby and Rabouin explore criticisms that, while well-intentioned, the Fed’s efforts have contributed to wealth inequality and helped today’s financial world grow far removed from the real-world economy.
“The Federal Reserve has taken on a much more active role in trying to manage our economy, basically, since the financial crisis in 2008-2009,” Jacoby tells Aronson-Rath. “And then the experimental policies that they put into gear at that point really never left us. … it's led to all sorts of unforeseen, unintended consequences that we're all contending with now.”