Is Federalism Still Relevant

Category: Government
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How it works

Public Opinion Polls on the FED

Public opinion polls regarding the FED are typically sent out to specific peoples; presumably intent being to hear from the most diverse group of the public the surveyors can make. Another conclusion is found in the responses of the 1st survey, where many find the members of the FOMC no more interested in the well being of the economy than a CEO of a large enterprise.

Cato Institute 2017 Financial Regulation Survey:

  • The method of sampling used in this survey was Active Sampling, where using proprietary online software and only those asked to participate participated, therefore not random sampling at all.
  • The questions given are quite comprehensive and thorough.
  • The questions on the survey were also very fair and legitimate questions and did carefully consider answer categories having many specific answers per question.
  • The sampling error in this survey was 5%

Survey of Primary Dealers October 2019

For most questions, median responses across dealers, along with the 25th and 75th percentiles, are reported, therefore not a truly random sampling.

The questions given are quite comprehensive and thorough and ask for write-in answers.

The questions on the survey were very fair, and did carefully consider answer categories having many specific places and areas of number discrepancy in order to answer each question.

The sampling error in this survey was decently high, as many who participated neglected to answer all questions.

The Connection to Public Ideology

The FED’s Control on Interest Rates & Ideology

Free Market Views

Government Regulated Market

It is considered invasive and unconstitutional

The fact that the agency is governmental and its heavy involvement in the open market, leads many to believe it is an unconstitutional expansion of powers.

Contribution and Exacerbation of the Great Depression

Back in the 1920s, the beginning of the Great Depression, the FOMC decided to continue it’s inflation policy, causing an artificial inflation in prices all the while withholding th production of money to stimulate the economy.

Increases the Credibility and Accountability of Future Policy Actions

By the creation of the Federal Reserve System, a slow moving bureaucratic process forms, which prevents false promises and rash decisions to be made when involving the nations financial and monetary policy.

It Contains Systemic Risks in the Country’s Financial System

Oversight on the open market prevents natural free-market processes and their resultant effects from destabilizing the nation’s economy.

It Increases Transparency and Predictability

Through the explanation and clarity of the agency’s financial/economic targets, predictions and security can be found by lenders and creditors.

  • The Connection to the Voters
  • Voter Reaction
  • State Laws & Voter Reaction

The Federal Reserve Banks and System in all 12 districts act according to the federal government. The states may take some actions or laws passed by the FOMC to court, however, the ability for state governments to legislate the FED’s oversight is not technically possible.

State Laws & Legislation

In a survey taken by CATO, public opinion views the seven selected members of the FOMC on par with the self interested economic ‘big-shots’ of the private sector.

See: Survey 1 Slide 25 titled

“Cato Institute 2017 Financial Regulation Survey:”

for more information.

The Connection to the Media

Often reporting on the operations with respects to the average citizen, the huffington post and other news sources like it provide a window into the bureaucratic process while connecting it to those who would typically go on about life un-irked by the decisions coming from them.

Youtube Coverage

The Federal Reserve System receives majority of Youtube coverage every FED press conference.

The FED holds routine press conferences, to present the financial health of the nation, the coming interest rates (to be lowered raised or left the same,) and the foreseeable health of the National economy.

Typically on youtube and other social media this conference is covered due to its effect of the macro economy. Specifically investing channels are the ones covering the conference in order to make plays and predictions on how the market will react off of the news.

‘Trading Fraternity’ is the channel which I tend to watch as he posts every night before trading at 9:00 pm, giving his plays for the following trading day.

Trading Fraternity: A Stock Idea and Market Analysis Chanel

Online News Coverage

Online news typically covers the FED’s monetary policy and attempts to explain how it affects a typical member of the public.

Huffington Post: ‘How the Federal Reserve Interest Rate Affects You’

Within the NY Times, there is a section of news which reports on the newest policy and statistics on the national economy. There is also additional coverage on the Conference as it is held.

Many credit this form of information and media coverage as still the most reliable. Print often possesses a viewership composed of older generations.

Network Coverage

Similar to Trading Fraternity on Youtube, Network coverage tends to focus on the plays that may result from FED news.

Jim cramer is an economist and stock trader with his own Network TV show called ‘Mad Money.’ The show airs every trading night just as the Youtube channel posts. The premise of the show is to entertain with Jim’s personality while also discussing what occurred that day in the market and what will occur based on the current news. Advice and suggestions are sometimes given for the viewers looking to buy.

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Is Federalism Still Relevant. (2021, Aug 09). Retrieved from

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