The Fed's latest move confirms it's trying to thread the needle between cooling inflation and helping banks in turmoil
Business InsiderMAY 2023
The Fed, under both Democrat and Republican leadership, seems to have turned a blind eye to the failures of the banks it's supposed to keep in check. Since March 2020, it has not required these banks to hold depositors' cash, which is a key factor in why the two institutions failed so miserably. This is a bipartisan issue that should be fixed by all elected representatives who care about maintaining a safe and ethical financial system that prioritizes consumer protection. Appointing an independent watchdog is a step in the right direction.
While the Fed isn't faultless in this crisis, there needs to be a focus on the banking executives who carelessly caused panic among investors and depositors, resulting in the subsequent run on the two banks. These executives, who knew they would get bailed out, abruptly told the world that they were short on cash without securing a plan to solve it first. Those responsible for such negligence are the ones who should be held to account.