Federal Reserve System Pros And Cons

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The Federal Reserve system is some time referred to as Federal Reserve is better known as (The Feds) is an independent institution that was created on December 23, 1913 when President Woodrow Wilson signed the Federal Reserve Act into Law, and has been the central bank of the United States ever since. Central bank the main purpose of the United States that regulate all the supplies of money and credit to the economy. The Fed have two things in mind when theses regulates come to mind that’s to prevent the economy from rapidly growing too fast, and also to prevent the economy from shrinking. “The Federal Reserve system was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system”. …show more content…

The Fed can destroy or create money here are some ways The Fed creates money in three ways: By creating funds and credits on a balance sheets the Fed purchase and sale U.S. government securities from financial institutions Fed second discount rate the interest rate the Fed charges on loans it makes to banks by increases and decreases the rate and encourage banks to borrow the loans to the public, third the Feds operate the amount of liquid reserves the banks must keep on …show more content…

As you may or may not know “The Federal Reserve System is made up of a Board of Governors and twelve regional Federal Reserve Banks located in major cities throughout the country. While the board has seven members the two serve as chairman and vice chairman and each governor is appointed to fourteen-year term while appointments to the roles of chairman and vice chairman are for four years. The Federal Reserve governors serve second to lifetime appointments of federal judges” (Board, 2003). The Federal Open Market Committee (FOMC) sets target that meets eight times per year to make decisions on monetary

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