Hugh Johnson
Member
A """partnership""" in which one party has 100% control over the leadership, mandate and very existence of the other partner, while the other has no power. Any independence is a fiction meant to prevent democratic control over monetary policy.Again, it's still not a state entity. You are correct that the Federal Reserve act created it, and the Ferderal government appoints the board of governors, but even Wikipedia states it has "public and private components."
"The Federal Reserve System is composed of several layers. It is governed by the presidentially appointed board of governors or Federal Reserve Board (FRB). Twelve regional Federal Reserve Banks, located in cities throughout the nation, regulate and oversee privately owned commercial banks.[15][16][17] Nationally chartered commercial banks are required to hold stock in, and can elect some of the board members of, the Federal Reserve Bank of their region. The Federal Open Market Committee (FOMC) sets monetary policy. It consists of all seven members of the board of governors and the twelve regional Federal Reserve Bank presidents, though only five bank presidents vote at a time (the president of the New York Fed and four others who rotate through one-year voting terms). There are also various advisory councils. Thus, the Federal Reserve System has both public and private components.[list 2] It has a structure unique among central banks, and is also unusual in that the United States Department of the Treasury, an entity outside of the central bank, prints the currency used.[22]"
Does Federal Express hold stock in the Post Office? Does Conagra or Monsanto hold stock in the USDA? Do Merck or Glaxo hold stock in the FDA?
It's not a separation, it's a partnership, which is the word I used in my first statement. You can argue that it's not functionally different from the Central Banks of Europe, which appear to be fully under state control (and G. Edward Griffin makes this point himself), but it's still not a state entity.