From The Fed To Main Street

Self Made: NASE's Blog

Blog With Us

Welcome to the Self Made. This is a blog focused primarily on the self-employed and micro-business and full of fantastic posts by not only our team of experts but by YOU!  We realize that there are many ways to help the small businesses out there which is why we invite other business minded individuals to post here and help the rest of the community as well.

From The Fed To Main Street

Aug 16, 2011

Posted by Mike Beene - So the news is that the Federal Reserve will keep interest rates at current levels until 2013. Experts are stunned that the Fed would even mention its plans for a date that far into the future. How might this affect the Self-Employed?        

Let’s look briefly at the sometimes mysterious Federal Reserve. I find that few people have a true understanding of the institution past some vague recollection from high school civics. Created by congress in 1913, the Federal Reserve System (Fed) is the central bank of the United States. Today it is much more, and in addition to its banking system responsibilities, the Fed is charged with conducting the nation’s monetary policy. 

Congress charges the Fed with a dual mandate: full employment and stable prices. These goals are generally addressed through the Fed’s ability to control the amount of money in circulation and, thus, hopefully to influence interest rates. The Fed must fulfill this mandate with the tools the law provides, and it pays banks interest rates on the portion of reserves that they keep with the Fed. The Fed also attempts to influence interest rates by buying treasury bonds. This ultimately increases the money supply (and some call this process “printing money”) because the Fed is, in effect, creating funds to buy the bonds. The Fed says that most of its purchases are of old bonds and therefore that it is not financing the new debt the U.S. is incurring. The Fed hopes to lower long term interest rates through this practice. 

All this sounds good, but our 15 trillion dollar economy can’t seem to grow and the U.S. falls farther into debt. And the loans are not getting to Main Street. The Fed last year held a major summit on small business lending which I attended on behalf of the self-employed. I am convinced there is true concern for Main Street. However, the Fed is not all powerful and often good intentioned government solutions, such as regulation to help consumers, does more harm than good by adding confusion and uncertainty. The Fed has attempted to loosen regulation on lenders in hopes they will make more loans, and the Small Business Administration has several incentive programs to get lenders moving.

The best service the government can give us is to get our fiscal house in order so we can again have the confidence to pursue the American dream. It is time once more for government to take a step back and let our micro-businesses, old and new, lead us back to prosperity.

Helpful Tips for Organizing and Managing Your Business Inventory

Helpful Tips for Organizing and Managing Your Business Inventory What started as a hobby, side hustle, or microbusiness is now growing into something bigger and better. That means it’s time to get serious and start implementing systems into your business.   One important part of a small business that often gets overlooked is inventory management. Smart

Written By Ryan M (@pss-california) - Tips and Tricks

7 Profitable Craft Business Ideas for Students to Start in 2024

Are you looking for a unique way to earn some extra cash while unleashing your creative spirit? Crafting isn’t just a fun hobby; it can also be a lucrative business venture. With a bit of imagination and some entrepreneurial spirit, you can turn those skills into a profitable enterprise right from your dorm room.  Whether

Written By Karcy Noonan (@anthonylucas) - How-To Guides / Tutorials

Scent Marketing: How Small Businesses are Using Fragrance to Enhance Customer Experience

In the competitive world of small business, creating a memorable customer experience is key to standing out. One innovative strategy that has gained traction is scent marketing. By incorporating carefully chosen fragrances into their environments, small businesses can evoke emotions, create lasting memories, and even influence purchasing behavior. This article explores how small businesses are

Written By Karcy Noonan (@anthonylucas) - Customer Service Insights

Starting a Bridal Gown Business: Key Considerations and Strategies

As a business that combines elegance, romance, and celebration, the bridal gown industry appeals to those who want to pursue their entrepreneurial dreams. But breaking into this cutthroat market demands careful preparation, ingenuity, and a deep grasp of the workings of the industry. This essay examines crucial factors and practical tactics for starting and expanding

Written By Delilah (@delilah-a) - Best Practices | Tips and Tricks

Overcoming Common Challenges Faced by Online Entrepreneurs

Starting a successful online business is like starting a tug-of-war between your time and money. For early-stage entrepreneurs, you constantly have to ask yourself if you should invest your hours into learning new skills, like web design and video editing, or if you’re better off hiring experts. And then there’s the question of how you’ll

Written By Joseph Muscente (@lendingtree123) - Best Practices

Want More?

See our latest Self Made content by clicking here.  Want to see our archives, click here.

Courtesy of