The Federal Reserve is responsible for implementing U.S. monetary policy. As it directs the world's largest economy, the Fed earns top rank among powerful institutions. Though the central bank guides state monetary policy, the Fed is largely a private institution. As such, bank operations move in secrecy, absent of oversight from the public arena. Thanks to Carmen Segarra, however, we now have some keen insight to the inner operations of the Federal Reserve System.
Segarra was recently employed at the New York Fed as a bank examiner, charged with ensuring the bank followed internal regulations and conducting "oversight" of the economic powerhouse. During her tenure, Segarra grew suspicious that the Fed was rather lenient with powerful, well-connected investment banks - notably Goldman Sachs (a key player in the 2008 financial crisis). To document her concerns, she recorded 46 hours of private meetings and conversations. Her recordings reveal the Fed is, in fact, rather cozy with the financial institutions it's supposed to regulate. With evidence in hand, Segarra voiced her objections. She was soon fired.