Central Bank Of The United States

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The Federal Reserve is the central bank of the United States, its structure combines centralization with regional authority: including a Board of Governors in Washington D.C., a Federal Government Agency, and twelve regional Reserve Banks. One branch in particular, the Federal Open Market Committee, made of twelve Federal officials, is committed to fulfilling its ordinance from congress to promote maximum employment, maintain stable prices, and moderate long-term interest rates. According to the Federal Reserve System online, “The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system.” In order to do this, the Fed meets every six weeks to consider changes in interest rates, and may have an unscheduled meeting at any time in between. The Fed’s responsibilities rest in four categories: monetary policy, financial intermediation through emergency liquidity (as the lender of last resort), supervision of certain types of banks and other financial firms, and establishment of payment system services to financial firms and the government. The primary method of monetary policy is through open market operations and involves the purchase of existing U.S Treasury securities. Through this type of purchase, the Fed increases the reserve base and thereby facilitates the ability of depository institutions, banks, to make loans and expand money and or credit. The Fed traditionally conducts these open
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