The Responsibilities and Powers of the Federal Reserve Draft Essay

Federal Reserve System, commonly referred to as Fed, was established in 1913. This was after American congress passed the Federal Reserve Act in December the same year, establishing a new set of institutions which were meant to govern the relationship between banks, the government, and the production of money (Broz 1997 p. 1). The Federal Reserve System divides the nation in 12 districts, each with its own federal reserve bank (Boyes & Melvin, 2006). Overall administrative structure of the system consists of: Board of Governors. The board is headed by a chairman who is appointed by the president to a four year term (Boyes & Melvin, 2006). The chairman serves as a leader and also as a spokesperson for

The Federal Reserve System is the simply-said national bank of the United States. It is responsible for five general capacities to advance the compelling process of the U.S. economy and for the most part, the general population intrigue. The Federal Reserve

In December of 1913, the Federal Reserve System (Fed) was created by the Federal Reserve Act. According to Congress, the role of the Federal Reserve System is to promote maximum employment, stability and growth of the economy, and moderate long-term interest rates. The Fed employs Monetary Policy in an effort to manage both the money supply and interest rates while stimulating the economy to operate close to full employment. One school of thought called Monetarism believes that the Federal Reserve should simply pursue policies to eliminate inflation. Zero inflation may help the market to avoid imbalances, stabilize the business cycle, and promote steady growth in our economy. On the other hand, zero

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”.

After the Revolutionary War, many of the country’s citizens were in great debit and there was widespread economic disruption. The country was in need of an economic overhaul and the new country’s leaders would need to decide how to do this to ensure the new country did not fall apart. After two unsuccessful attempts at a national banking system, the Federal Reserve System was created by the Federal Reserve Act of 1913. Since its inception, the Federal Reserve System has evolved into a central banking system that grows with the country. The Federal Reserve System provides this country with a central bank that is able to pursue consistent monetary policies. My goal in this paper is to help the reader to understand why the Federal

The Federal Reserve System was founded by Congress in 1913 to be the central bank of the United States. The Federal Reserve System was founded to be a safer, more flexible, and more stable monetary financial system. Over the years, the role of the Federal Reserve Board and its influence on banking and the economy has increased. Today, the Federal Reserve System's duties fall into four general categories. Firstly, the FED conducts the nation's monetary policy. The FED controls the monetary policy by influencing credit conditions in the economy. The FED measures its success in accomplishing these goals by judging whether or not the economy is at full employment and whether or not prices are stable. Not only

The Federal Reserve System is a central banking of the US Government, most commonly known as the Fed. A central bank serves as the banker to both the banking community and the government. It issues the national currency, conducts monetary policy, and plays a major role in

The Fed formerly known as The Federal Reserve was created in 1913 by the U.S. Congress, to provide structure over the world’s largest economy. The Fed controls money supply, sets interests rates, regulates banks, and ensures the safety of, and the credibility of the financial system. The Fed formulated a method that created liquidity in the money supply, which in turn, made sure banks could honor withdrawals for customers. The Fed’s system made currency more elastic and credit more adequate, meaning it had to control inflation by making sure prices didn’t rise too quickly. It also needed a way of increasing or decreasing the country’s supply of currency in order to prevent inflation and recession

Within the United States they have the ‘Federal Reserve System’, often referred to as the ‘Fed’. The seven members of the Board of Governors are appointed by the President but must be confirmed by the Senate. Two members from the Board are selected by the President and

The United States Congress designed the Federal Reserve Bank to supply the country with a stable financial system. In addition, the Federal Reserve is held responsible for managing the country's monetary policy. Also, it is obligated to play a serious part in controlling the function of the country's payment system.

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

Monetary policy is used to stabilize the economy both during growth and hard economic times. The Fed uses monetary policy to maintain the money supply in an economy, which in turn leads to the interest rates at which money can be lent in the country. Monetary policy can further be broken down into qualitative policy and quantitative policy. Quantitative methods are ones that physically affect the amount of credit that is actually created in the economy. This method includes the FED fund rate at which money is lent to commercial banks. Dependent on if it increases or decreases; this will cause a corresponding increase or decrease in the money supply of the economy. Due to America’s current financial situation the federal fund rates are close to zero in hopes of providing liquidity in the market place (“Financial Policy: Looking Forward" ). Another monetary policy tool employed by the Fed is the reserve requirement. The reserve requirement is the amount of money that banks need to keep on hand in proportion to the amount of deposits they have in their banks. The reserve requirement can either be increased or decreased, both of which will have a direct impact on the money supply and lending. Lastly, a major impact on the economy and interest rates are the regulations and how much banks are willing to lend to the consumer

Monetary policy has to do with the regulations that a government puts in place to control money in circulation in the economy. An effective monetary policy will ensure that current and anticipated events in the economy of a country are taken care of. The Federal Reserve (The Fed) is the central bank of the United States, and it is responsible for the formulation and execution of these policies.

The Federal Reserve is in charge of lending rates and inflation rates and is the central banking for the United States. The Federal Reserve Bank maintains a database with economic data. The Federal Reserve

Banks play a huge role in the market. Their monetary policies can increase or decrease the amount of spending in the economy. The Federal Reserve Bank, the United States central bank, has the most power of all banks. It is considered to be the bank’s bank. It was established by an act of congress in 1913, which created the Federal Reserve System. This system regulates the banks in the economy. Since the Fed has so much control its policies directly influence all banks. This is typically steered by the interest rates.