For What Purpose was the Fed Created?

Excerpt:  

The role of the Federal Reserve has changed enormously, not for the good, since its creation in 1913.

Most people today assume that the Fed’s proper function is to manage the economy via monetary policy.

A quotation in today’s Wall Street Journal in the “Ahead of the Tape” column reflects that understanding.

“We may be going from bubble to bubble,” says Ed Yardeni, chief investment strategist at Yardeni Research. The problem is that the only other choice for the Fed is to do nothing and let the economy fall into a recession.

“The Fed was created to avoid financial crises and get us out of them when they happen, and that’s what they’re trying to do.”

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http://www.thenma.org/Staff-Writer/tbrewton030808.htm