5 myths debunked about the Federal Reserve
Myth 1: The Fed is run by foreigners
The Fed is an American institution. About the myth: "This is simply wrong," says Charles Calomiris, Henry Kaufman professor of financial institutions at Columbia University.
"What we know is, at least on the surface, the Federal Reserve is run by a combination of the Federal Reserve board and the 12 Federal Reserve banks, who together form the governance of the system," says Calomiris, who also is a visiting scholar at the International Monetary Fund.
The Board of Governors is comprised of Americans. "Some conspiracy-theory types sometimes argue that vague international organizations secretly control the Fed and other central banks. Yet they provide no evidence for that, which of course they can't if it is really secret!" says Steve Horwitz, an economics professor at St. Lawrence University in Canton, N.Y.