Explain What Is The Federal Reserve When Charged With Safeguarding The Economy

In an instant a single organization, with minimal government oversight, can influence entire markets and monetary supply of the country with the largest economy in the world. The United States founding fathers established a government system to distribute certain powers of the federal government to particular branches that have checks and balances in place to assure efficiency and openness among its divisions. One may assume that the organization that controls the monetary supply of an economic powerhouse of a country would have strong oversight and control over the policies they carry out. The Federal Reserve, also referred to as The Fed, has a purpose to protect and control the fiscal system of the United States to create a safer lending and borrowing market for private citizens, businesses, and the federal government. Americans perceive the Fed as an extremely powerful organization. Some have asserted, including Hillary Clinton’s spokesman, Jesse Ferguson, that “The Federal Reserve is a vital institution for our economy and the well-being of our middle class” (qtd. in Shapiro 7). Unfortunately, Federal Reserve financial policies have become detrimental to the growth of the national economy and the dollar, therefore, congressional actions against the Federal Reserve Bank are a necessity to avoid continuation of instability in both US and world markets.

This briefing is designed to cover several key economic concepts which will help prepare you for your upcoming debate regarding the Federal Reserve. The Federal Reserve is the central banking institution of the United States of America. Commonly known as “the Fed”, the Federal Reserve plays an extremely important role in the economy of the USA, and by association, the world. Created in 1907 following a severe economic crisis, the Federal Reserve uses a variety of tools to promote growth, reduce instability, and prevent crises in the American economy. In general, the Federal Reserve accomplishes these goals by using their influence to maximize national employment, control inflation and interest rates, and increase national GDP. Before we discuss the Fed in any further depth, we will first review some of these basic economic concepts that are essential for understanding how it operates.

The Federal Reserve System, also called “the FED”, is the United States central bank, a national institution which governs the production and distribution of money. It was created to provide the United States with a more secure and more stable financial structure. The Federal Reserve System has many responsibilities today. First, the FED controls U.S. monetary policy by altering the supply and demand of the economy in order to keep the market at potential level of output. Second, it oversees the regulation of the nation’s banks and other financial institutions to ensure fairness and accuracy. Third, it maintains the stability of the economy by

The Federal Reserve System uses four main tools in regulating the money supply: open market operations, changes in reserve ratio, changes in the interest rates paid on reserves, and discount rate

he Federal Reserve is the central banking system of the United States, which controls the monetary policy of the US (Hubbard). When first conceived in 1913 its primary function was to protect banks, but, in part due to the Great Depression, the role the Federal Reserve plays in the economy has evolved into something much more influential. Ben Bernanke, the Federal Reserve chair from 2006-2014, said in a speech in 2002 while he was still just a board member regarding the Federal Reserve’s role in the Great Depression: “Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry. But thanks to you, we won’t do it again” (Moratta). This was an important admission that showed the flaws in the Federal Reserve’s decisions back then, while also foreshadowing the role it will have in the Great Recession of 2007-2009. The Federal Reserve today has a much wider range of functions within the economy and government, and it is one of the major influences not just in the US economy and financial system but the world as well.

The Federal Reserve System is commonly referred to as the U.S. central banking system. Congress discovered this system in 1913 with the purpose of providing America with a stable monetary and financial system. The Federal Reserve has three components, which includes the Board of Governors, the Federal Open Market Committee, and the Federal Reserve Banks. The primary functions of the Federal Reserve consists of conducting monetary policy, banking supervision, promoting stability for the financial system, and providing banking services.

The Federal Reserve has four main responsibilities. It controls America's monetary policies. By influencing credit conditions, the Federal Reserve stabilizes prices and inflation. It also regulates the financial and banking systems in the United States, protecting the consumers' credit

Question 1a. Write a one page concise or two pages double spaced summary explaining the Federal Reserve.

The Federal Reserve System is often referred to as “the Fed.” It serves as the nation’s central bank and arguably plays the most crucial role in the U.S. economy. It is the most important regulatory agency in the U.S. monetary system and is usually considered the monetary authority. The Fed has several responsibilities and performs several functions. There are a few theories documented that challenge whether or not the Federal Reserve System exists the way it is defined.

The Fed uses three tools that help influence the Monetary Policy. Open Market Operations, Discount rate, and Reserve Requirements. The open market

The Federal Reserve System has a crucial role as far as the United States economy is concerned. Very few individuals are aware of how the Federal Reserve System works including the functions that are associated with it and the impacts it will have on the general economy so to say. The Federal Reserve System (Fed) plays a significant role in terms of dealing with predatory lending. With its base in Washington, D.C., it has strict measures put in place to regulate the United States banks (Greenspan, 1997). The Fed takes part in studying the economic trends of the United States and uses the final analysis to come up with policies that will make the general economy operate more efficiently. These policies that are made also moderate the way banks

The Federal Reserve operates as a gatekeeper to the United States economy. It is the central bank of the United States and the head bank in the United States government. Its job is to regulate financial institutions, manages the nation’s money, and influences the economy. Since its creation in 1913, the Federal Reserve has helped stimulate and slow down our economy, with its original job being to organize, standardize, and stabilize the United State’s monetary system. In times of recessions, the Federal Reserve (Fed) can lower interest rates to encourage people to borrow money and make purchases.

Evaluate the role and the effectiveness of the Federal Reserve in stabilizing the current economy.

Since the mid 1980’s the United States economy has been characterized by low inflation and low volatility in the market. The Former Fed chairman Ben Bernanke has even gone as far to say that the Fed has tamed the business cycle. Supporters of this idea believed that deregulation of the financial sector and controlling inflation would bring long expansions and limited recessions. What were the factors that caused this period of stable economic growth? This period of low volatility was due to both Fed regulation and good timing or luck. The financial crisis has obviously proven that the Fed has not fully tamed the business cycle. “Whether any rise in volatility is more likely temporary than permanent will depend on the cause of the rise in volatility” (Clark, 5-6). Now the question remains is if The Great Moderation is really over, and if the economy can return to this period of low volatility. Some believe that this rise in volatility is only temporary.

The introduction of expansionary monetary policy can have many impacts on an economy. One such impact is to stimulate consumer spending and levels of