The Fed: The Inside Story How World's Most Powerful Financial Institution Drives Markets

Tomostinvestors,theFedisonepersonChairmanAlanGreenspanwhosejobistosetinterestrates.Inthisentertainingandenlighteningaccount,popularfinancialjournalistMayer(TheBankers;TheGreatest-EverBankRobbery)tracestheevolutionoftheFederalReservefromasleepyregulatoryagencytothemostpowerfuleconomicinstitutionintheworld.Createdin1913,theFedwasdesignedtoregulatebanksinanerawhenthey,andnotthegovernment,wereassumedtocontroltheeconomy;interest-ratesettingwasonlyaminorpartoftheagency'sjob.Withtheriseofaglobaleconomyinwhichindividualbanksnolongerwieldtheirformerinfluence,theFedhascompletelyreinventeditself.Mayer,aguestscholarattheBrookingsInstitutionandaregularcontributortotheWallStreetJournal,tellsofturfbattleswiththeTreasuryDepartmentandtheFederalDepositInsuranceCorporation,inadditiontoconflictswithbankersandforeigninstitutions.Althoughhistaleinvolvesextensivediscussionoftopicslikecheckclearing,reserveassetsandregulatoryaccounting,andmostoftheprotagonistsarestaid,Mayerlivensthingsupwithirreverentcharactersketches,flamboyantprose(consideringthesubjectmatter)andcannystorytelling.Atthesametime,hepresentsthehistoricalandeconomicdetailsaccurately.(JuneForecast:WrittenwiththeverveofaVanityFairmagazinearticle,andsupportedbya20-cityradiosatellitetour,thisverytopicalbookshouldattractfansofMayer'spreviousbooks,inadditiontoinvestorswhowishtomakesenseoftheFed'sroleinthemarket.