Source: Ludwig von Mises Institute
by Jane L Johnson
“Conventional wisdom has it that the Federal Reserve system (the ‘Fed’) and the US Treasury Department are two separate entities. Congress created the Fed in 1913 as a legally and financially independent federal agency, privately owned by its member banks, with no funding from the federal budget. The US Treasury, on the other hand, is an Executive-branch cabinet-level department reporting directly to the President, with funding appropriated in the federal budget. Conventional wisdom also tells us that the Fed’s monetary policy (managing the money supply and interest rates, directed by the Fed’s Chair and Board of Governors) is separate from Treasury’s fiscal policy (collecting taxes and implementing federal spending) at the behest of Congress and the Executive branch). … The distinction today between monetary and fiscal policies is muddled. ” (09/05/24)
https://mises.org/mises-wire/does-any-daylight-remain-between-monetary-and-fiscal-policy