Seiberg, J. (1996, December). The fed considers sweeping changes in risk-based capital requirements. American Banker, pp. 1-2.
The Federal Reserve and its board chairperson have been a major topic in the financial news for several reasons. Last year, the Senate Committee on Banking evaluated monetary policy under Federal Reserve Board chairperson Alan Greenspan as part of their consideration of authorizing Greenspan's second term. Some in the banking industry consider the Federal Reserve's ability to influence monetary policy an illusion (Ely, 1996).
Norton, R. (1997, August). Greenspan's decade: Get real. Fortune, pp. 30-32.
Fedpoint 45 covers reserve requirements adequately but not in depth. While the article acknowledges that the Federal Reserve's influence on money creation and monetary policy may not be as strong as many might believe, the article fails to mention the impact of factors outside the Federal Reserve, such as commercial banking, other financial markets, and the economy, on monetary policy.
Ely, B. (1996, February). A hard look at fed's wizard of oz. American Banker, p. 18.
The 10 years since Greenspan took over as chairperson of the Federal Reserve are the best years in the history of monetary policy according to a recent article in Fortune magazine (Norton, 1997, p. 30). Norton (1997) characterizes the Federal Reserve as an often destabilizing force in the economy before the early 1980s. Early predictions that inflation would rise have been mostly untrue under Greenspan. Price stability is the most important goal for the Federal Reserve. Greenspan led the Federal Reserve through a series of rate hikes to control inflation (Norton, 1997, p. 30).