>Yes, it is. Whoever said it should read the first couple of chapters of
>Created Unequal, by Galbraith Jr. They make it clear that he understands
>very well who the Fed works for.
Enrique is right. From a later chapter in the book "Interest Rates and the Central Bank" James K Galbraith writes:
"At such times, the claim that policy is 'fighting inflation' is merely a useful cover for the pursuit of other objectives, In particular, the claim in 1994 that the Federal Reserve was lauching a 'preemptive strike' against inflation had no substance. What was involved, instead, was a complicated manuever to restart bank business lending on terms that were sufficiently lucrative for the banking industry to accept. The fundamental fact is that the Federal Reserve, WHICH IS ITSELF IN PART OWNED BY THE PRIVATE COMMERCIAL BANKING SYSTEM, conducts moentary policy to support the pecuniary interests of that sector whenever there are not over contrary considerations. It has done so consistently since the early 1970s>"226-7; emphasis mine
rnb