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The Federal Reserve After World War 2 Summary

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This video was about the Federal Reserve after World War 2. Ben Bernanke talked about its challenges and modernization. This video talked about inflation and how it grew at a rapid pace. Which was caused by pressure of World War 2. The Fed had to keep low interest rate, which allowed the government debt to grow while it was financing the war at a cheaper rate. Keeping interest rate low caused the economy to overheat and inflation to sky rocketed out of control. The video talked about the Fed-Treasury Accord of 1951. This act allowed the Federal Reserve to operate independent from the government so it can set the right interest rate. That way it can access economic stability. Since 1951 the Fed has been independent from political pressure

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