Cumberland's Eisenbeis Says Fed Chair Sets Policy Tone

The video discusses the structure and influence of the Federal Open Market Committee (FOMC), highlighting the role of the Fed Chair. Despite having 19 members, the Fed Chair holds significant power due to budget control. Leadership changes, such as those by Ben Bernanke, can alter discussion dynamics and policy outcomes, emphasizing the importance of the Fed Chair's role.

What is the role of the Director of Research at the Atlanta Fed in relation to the FOMC?

• They are responsible for setting interest rates.

• They have the final say in policy decisions.

• They are part of the FOMC and contribute to discussions.

• They manage the budget of the FOMC.

How many members are there in the Federal Open Market Committee when it is in full force?

• 12

• 15

• 19

• 21

Why is the position of the Fed chair considered powerful?

• Because they have a lifetime appointment.

• Because they control the budget and set the tone for operations.

• Because they can veto any decision.

• Because they are elected by the public.

What change did Ben Bernanke implement that affected the FOMC discussions?

• He changed the order of how people spoke.

• He eliminated voting rights for some members.

• He reduced the number of meetings.

• He increased the number of members.

How can small changes by the Fed chair impact the FOMC?

• They can lead to a complete overhaul of policies.

• They can affect the dynamic and discussion process.

• They can result in the dismissal of members.

• They can increase the budget significantly.