The Fed

Extracted Attributes

• Type

  Central banking system

• Country

  United States

• Funding

  Self-funded, does not receive funding appropriated by Congress

• Structure

  Board of Governors, 12 regional Federal Reserve Banks, Federal Open Market Committee (FOMC)

• Common Name

  The Fed

• Founding Act

  Federal Reserve Act

• Independence

  Operates as an independent central bank, monetary policy decisions do not require approval from executive or legislative branches

• Publications

  Beige Book, FRED database

• Official Name

  Federal Reserve System

• Accountability

  Accountable to Congress and the American people

• Current Chairman

  Jerome Powell

• Net Income (2015)

  100.2 billion USD

• Net Income (2020)

  88.6 billion USD

• Profits Disposition

  Transferred to U.S. Treasury after dividends and account surplus

• Key Responsibilities

  Bank supervision and regulation, maintaining financial system stability, providing financial services

• Remittance to US Treasury (2015)

  97.7 billion USD

• Remittance to US Treasury (2020)

  86.9 billion USD

• Primary Objectives (Dual Mandate)

  Maximize employment, stabilize prices, moderate long-term interest rates

Timeline

• A series of financial panics, particularly the Panic of 1907, led to the desire for central control of the monetary system. (Source: Wikipedia)

  1907-XX-XX

• The Federal Reserve System was created with the enactment of the Federal Reserve Act. (Source: summary, Wikipedia)

  1913-12-23

• The Great Depression led to an expansion of the roles and responsibilities of the Federal Reserve System. (Source: Wikipedia)

  1930-XX-XX

• Actions of the Fed are generally believed to have aided in recovery after the stock market crash. (Source: web_search_results)

  1987-XX-XX

• The Great Recession led to an expansion of the roles and responsibilities of the Federal Reserve System. (Source: Wikipedia)

  2000-XX-XX

• During the financial crisis, the Fed relied on open market operations to influence the federal funds rate. (Source: web_search_results)

  2008-XX-XX

• Earned a net income of $100.2 billion and transferred $97.7 billion to the U.S. Treasury. (Source: Wikipedia)

  2015-XX-XX

• Earnings were approximately $88.6 billion with remittances to the U.S. Treasury of $86.9 billion. (Source: Wikipedia)

  2020-XX-XX

• As inflation surged, the FOMC began raising interest rates to make borrowing more expensive and slow economic activity. (Source: web_search_results)

  2022-XX-XX

• Under Chairman Jerome Powell, the Fed's actions are seen as influenced by political tensions with Donald Trump and uncertainty from his Tariffs policy. (Source: related_documents)

  XXXX-XX-XX

Federal Reserve

The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to the desire for central control of the monetary system in order to alleviate financial crises. Although an instrument of the U.S. government, the Federal Reserve System considers itself "an independent central bank because its monetary policy decisions do not have to be approved by the president or by anyone else in the executive or legislative branches of government, it does not receive funding appropriated by Congress, and the terms of the members of the board of governors span multiple presidential and congressional terms." Over the years, events such as the Great Depression in the 1930s and the Great Recession during the 2000s have led to the expansion of the roles and responsibilities of the Federal Reserve System. Congress established three key objectives for monetary policy in the Federal Reserve Act: maximizing employment, stabilizing prices, and moderating long-term interest rates. The first two objectives are sometimes referred to as the Federal Reserve's dual mandate. Its duties have expanded over the years, and include supervising and regulating banks, maintaining the stability of the financial system, and providing financial services to depository institutions, the U.S. government, and foreign official institutions. The Fed also conducts research into the economy and provides numerous publications, such as the Beige Book and the FRED database. The Federal Reserve System is composed of several layers. It is governed by the presidentially appointed board of governors or Federal Reserve Board (FRB). Twelve regional Federal Reserve Banks, located in cities throughout the nation, regulate and oversee privately owned commercial banks. Nationally chartered commercial banks are required to hold stock in, and can elect some board members of, the Federal Reserve Bank of their region. The Federal Open Market Committee (FOMC) sets monetary policy by adjusting the target for the federal funds rate, which generally influences market interest rates and, in turn, US economic activity via the monetary transmission mechanism. The FOMC consists of all seven members of the board of governors and the twelve regional Federal Reserve Bank presidents, though only five bank presidents vote at a time: the president of the New York Fed and four others who rotate through one-year voting terms. There are also various advisory councils. It has a structure unique among central banks, and is also unusual in that the United States Department of the Treasury, an entity outside of the central bank, prints the currency used. The federal government sets the salaries of the board's seven governors, and it receives all the system's annual profits after dividends on member banks' capital investments are paid, and an account surplus is maintained. In 2015, the Federal Reserve earned a net income of $100.2 billion and transferred $97.7 billion to the U.S. Treasury, and 2020 earnings were approximately $88.6 billion with remittances to the U.S. Treasury of $86.9 billion. The Federal Reserve has been criticized for its approach to managing inflation, perceived lack of transparency, and its role in economic downturns.

Web Search Results

• Federal Reserve - Wikipedia

  The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to the desire for central control of the monetary system in order to alleviate financial crises.( Although an instrument of the U.S. government, the Federal Reserve System considers itself "an independent [...] In its role as the central bank of the United States, the Fed serves as a banker's bank and as the government's bank. As the banker's bank, it helps to assure the safety and efficiency of the payments system. As the government's bank or fiscal agent, the Fed processes a variety of financial transactions involving trillions of dollars. Just as an individual might keep an account at a bank, the U.S. Treasury keeps a checking account with the Federal Reserve, through which incoming federal tax [...] move to sidebar hide Checked Image 4: Page protected with pending changes From Wikipedia, the free encyclopedia Page version status ------------------- This is an accepted version of this page This is the latest accepted revision, reviewed on _1 July 2025_. Central banking system of the US "The Fed" redirects here. For the Welsh trade union, see South Wales Miners' Federation. For other uses, see The Fed (disambiguation) "The Fed (disambiguation)"). Federal Reserve SystemImage 5

• Federal Reserve - YouTube

  The Federal Reserve often referred to as “the Fed” is the central bank of the United States. Congress created the Fed in 1913 to help promote a safe and sound monetary and financial system for our nation. The Fed includes the Board of Governors in Washington D.C. which has seven members including the Chairman and Vice Chairman. All of the members of the Board are appointed of the President of the United States and confirmed by the United States Senate. The Fed also includes 12 regional Federal

• Federal Reserve Calibrates Policy to Keep Inflation in Check

  ### What is the Federal Reserve (Fed)? The Fed is the nation’s central bank, and perhaps the most influential financial institution in the world. The central governing board of the Federal Reserve reports to Congress, with the chair of the Federal Reserve appointed by the President. There are also 12 regional federal reserve banks that are set up like private corporations. ### Why does the Federal Reserve (Fed) raise or lower interest rates? [...] Monetary policy is controlled by a nation’s central bank, which in the United States, is the Federal Reserve (Fed). The Fed’s management of monetary policy can have a significant impact on the shape of the nation’s economy. Congress’ mandate for the Fed is to maintain price stability (manage inflation); promote maximum sustainable employment (low unemployment); and provide for moderate, long-term interest rates. Fed monetary policy influences the cost of many forms of consumer debt such as [...] The Federal Reserve’s Federal Open Market Committee (FOMC) sets a target interest rate policy for the federal funds rate. This is the rate at which commercial banks borrow and lend excess reserves to other banks on an overnight basis. The fed funds rate is raised or lowered usually to help impact underlying economic conditions. For example, in 2022, as inflation surged, the FOMC began raising interest rates to make borrowing more expensive and slow economic activity. That strategy was designed

• The Fed Explained - Monetary Policy - Federal Reserve Board

  The Fed sets the stance of monetary policy to influence short-term interest rates and overall financial conditions with the aim of moving the economy toward maximum employment and stable prices. In this way, the Fed's monetary policy decisions affect the financial lives of all Americans—not just the spending decisions we make as consumers but also the spending decisions of businesses: about what they produce, how many workers they employ, and what investments they make in their operations. [...] The Fed primarily conducts monetary policy through changes in the target for the federal funds rate. To encourage short-term interest rates to move close to the target range, the Fed uses various policy tools including: interest on reserve balances, and the overnight reverse repurchase facility rate. [...] At the same time, the Federal Reserve is accountable to Congress and the American people for its actions. It achieves accountability by being transparent about its policy deliberations and actions through a range of official communications. Twice a year, for example, the Fed Chair goes to Capitol Hill to testify before congressional committees on current economic developments as well as the Fed's actions to promote maximum employment and stable prices.

• Monetary policy of the United States - Wikipedia

  The Federal funds rate is a market interest rate, being the rate at which banks and credit unions lend reserve balances to each other overnight on an uncollateralized basis. The Fed consequently does not determine this rate directly, but has over time used various means to influence the rate. Until the 2008 financial crisis, the Fed relied on open market operations, i.e. selling and buying securities in the open market to adjust the supply of reserve balances so as to keep the FFR close to the [...] > "The Fed" controls the money supply in the United States by controlling the amount of loans made by commercial banks. New loans are usually in the form of increased checking account balances, and since checkable deposits are part of the money supply, the money supply increases when new loans are made ...( [...] One of the functions of a central bank is to facilitate the transfer of funds through the economy, and the Federal Reserve System is largely responsible for the efficiency in the banking sector. There have also been specific instances which put the Federal Reserve in the spotlight of public attention. For instance, after the stock market crash in 1987, the actions of the Fed are generally believed to have aided in recovery. Also, the Federal Reserve is credited for easing tensions in the

• Instance Of

  Q11032

• Inception Date

  1/1/1986