While I agree with Bernie on most issues, he will likely be losing my vote because of this article. And to clarify, I do agree with your comment, however I think the people in this thread have been manipulated by Bernie this time. Here's my breakdown of the the top points in this article and why they are misleading and mostly incorrect:
"The recent decision by the Fed to raise interest rates is the latest example of the rigged economic system. Big bankers and their supporters in Congress have been telling us for years that runaway inflation is just around the corner. They have been dead wrong each time. Raising interest rates now is a disaster for small business owners who need loans to hire more workers and Americans who need more jobs and higher wages. As a rule, the Fed should not raise interest rates until unemployment is lower than 4 percent. Raising rates must be done only as a last resort — not to fight phantom inflation."
The Fed raises interest rates to fight deflation, not inflation. When the Fed raises interest rates, the cost of money is now relatively more expensive, and combats the notion of too much credit with too little cash flow. When the economy runs too hot, the threat of deflation can be just as devastating as inflation. People (and banks) tend to hold onto money when inflation hikes. It's a balancing act, and economist have the entirety of the economy in mind when they make these choices.
"What went wrong at the Fed? The chief executives of some of the largest banks in America are allowed to serve on its boards. During the Wall Street crisis of 2007, Jamie Dimon, the chief executive and chairman of JPMorgan Chase, served on the New York Fed’s board of directors while his bank received more than $390 billion in financial assistance from the Fed. Next year, four of the 12 presidents at the regional Federal Reserve Banks will be former executives from one firm: Goldman Sachs."
In 2007, every single large-scale and commercial bank were required to take a bailout who had a hand in the sub-prime mortgage bubble. This included large banks who did not need a bailout of any sort, including competitors like Wells Fargo. So while Chase Bank did receive a bailout, they were not "given" anything. Each bank was forced to take a bailout in order to raise consumer confidence in the American banking system.
"Since 2008, the Fed has been paying financial institutions interest on excess reserves parked at the central bank — reserves that have grown to an unprecedented $2.4 trillion. That is insane."
The Fed is the "bank of banks". By offering this incentive, this puts downward pressure on the federal funds rate, the interest rate banks receive when they borrow cash from other banks. Banks borrow from other banks so they may lend to more consumers.
" Instead of paying banks interest on these reserves, the Fed should charge them a fee that would be used to provide direct loans to small businesses."
If Bernie is implying that the Fed should start disbursing consumer loans, he should read about the history of the Fed and why it does not compete with American banks in the consumer space.
"Full and unredacted transcripts of the Federal Open Market Committee must be released to the public within six months, not five years, which is the custom now. If we had made this reform in 2004, the American people would have learned about the housing bubble well in advance of the financial crisis."
This is a huge stretch, even for a politician. Did the banks lend irresponsibly to sub-prime consumers in the early 2000's? Yes. Were the sub-prime consumers forced to purchase these homes? No. The fact is that the sub-prime consumer was convinced he finally had a shot at the new american dream. He wanted a large house, a pool, in a neighborhood he couldn't afford. This was a hallmark of the 90's and the early 2000's. People wanted to live large, and they wanted it on command. The sad part is when his $50K/year job ran out, so did his payment to his mortgage. The sub-prime consumer could have cared less about what the fed publishes in regards to housing, employment, or interest rates. There are now regulations against sub-prime lending in the marketplace.