Federal Reserve

Extracted Attributes

• Type

  Central banking system

• Country

  United States

• Structure

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

• Criticisms

  Inflation management, perceived lack of transparency, role in economic downturns

• Common Names

  Federal Reserve, The Fed

• Founded Date

  1913-12-23

• Headquarters

  Washington, D.C., United States (Board of Governors)

• Official Name

  Federal Reserve System

• Net Income 2015

  $100.2 billion USD

• Net Income 2020

  $88.6 billion USD

• Independence Status

  Independent central bank (monetary policy decisions do not require approval from executive/legislative branches, not funded by congressional appropriations)

• Additional Objective

  Moderating long-term interest rates

• Founding Legislation

  Federal Reserve Act

• Remittance to U.S. Treasury 2015

  $97.7 billion USD

• Remittance to U.S. Treasury 2020

  $86.9 billion USD

• Primary Objectives (Dual Mandate)

  Maximizing employment, stabilizing prices

Timeline

• The Panic of 1907 highlights the need for central control of the monetary system, serving as a key impetus for the Federal Reserve's creation. (Source: Wikipedia)

  1907

• The Federal Reserve System is established with the enactment of the Federal Reserve Act. (Source: Wikipedia)

  1913-12-23

• The Great Depression leads to a significant expansion of the Federal Reserve System's roles and responsibilities. (Source: Wikipedia)

  1930s

• Alan Greenspan takes office as Chairman of the Federal Reserve Board, holding the post until January 2006. (Source: Britannica)

  1987-08

• The Great Recession contributes to a further expansion of the Federal Reserve System's roles and responsibilities. (Source: Wikipedia)

  2000s

• The Federal Reserve acts as a lender of last resort during the financial meltdown. (Source: Council on Foreign Relations)

  2008

• Janet Yellen becomes the first woman to chair the Federal Reserve Board. (Source: Britannica)

  2014

• The Federal Reserve earns a net income of $100.2 billion and transfers $97.7 billion to the U.S. Treasury. (Source: Wikipedia)

  2015

• The Federal Reserve earns approximately $88.6 billion and remits $86.9 billion to the U.S. Treasury; acts as a lender of last resort during the COVID-19 pandemic. (Source: Wikipedia)

  2020

• Federal Reserve Chairman Jerome Powell is criticized by AllIn podcast hosts for being too slow to cut interest rates. (Source: Document 916f3392-52d1-41a3-9336-492ebf4e47a1)

  Current

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 [...] The Federal Reserve plays a role in the U.S. payments system. The twelve Federal Reserve Banks provide banking services to depository institutions and to the federal government. For depository institutions, they maintain accounts and provide various payment services, including collecting checks, electronically transferring funds, and distributing and receiving currency and coin. For the federal government, the Reserve Banks act as fiscal agents, paying Treasury checks; processing electronic [...] 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 Fed Explained - Who We Are - Federal Reserve Board

  The Federal Reserve is the U.S. central bank, created by the Federal Reserve Act of 1913 to establish a monetary system that could respond effectively to stresses in the banking system. The Federal Reserve System includes The Board of Governors, a federal agency located in Washington, D.C., and 12 Federal Reserve Banks around the nation. [...] formulating effective monetary policy, assessing the health of the U.S. economy, promoting the stability of our financial system, and ensuring that consumer, community, and business voices are heard at the central bank. Image 17 The Federal Reserve is the U.S. central bank, created by the Federal Reserve Act of 1913 to establish a monetary system that could respond effectively to stresses in the banking system. The Federal Reserve System includes [...] The Federal Reserve System is all the people who work at the Federal Reserve Board of Governors, a federal agency in Washington, D.C.; the 12 Federal Reserve Banks, operating around our nation to help ensure all household, community, and business economic conditions and perspectives inform Fed policies, actions, and decisionmaking; and the 12 voting members from around the System who serve on the Federal Open Market Committee and help set crucial U.S. monetary policy.

• What Is the U.S. Federal Reserve? | Council on Foreign Relations

  The Federal Reserve is the most powerful economic institution in the United States. It is responsible for managing monetary policy and regulating the financial system. It does this by setting interest rates, influencing the supply of money in the economy, and, in recent years, making trillions of dollars in asset purchases to boost financial markets. [...] The U.S. central banking system—the Federal Reserve, or the Fed—is the most powerful economic institution in the United States, and perhaps the world. Its core responsibilities include setting interest rates, managing the money supply, and regulating financial markets. It also acts as a lender of last resort during periods of economic crisis, as demonstrated during the 2008 financial meltdown and the COVID-19 pandemic. Since 2020, the central bank has struggled with how to slow rapid inflation [...] Today, the Fed is tasked with managing U.S. monetary policy, regulating bank holding companies and other member banks, and monitoring systemic risk in the financial system. The seven-member Board of Governors, the system’s seat of power, is based in Washington, DC, and currently led by Fed Chair Jerome Powell. Each member is appointed by the president to a fourteen-year term, subject to confirmation by the Senate. The Board of Governors forms part of a larger board, the Federal Open Market

• Federal Reserve System | Definition, History, Functions, & Facts

  A Federal Reserve bank is a privately owned corporation established pursuant to the Federal Reserve Act to serve the public interest; it is governed by a board of nine directors, six of whom are elected by the member banks and three of whom are appointed by the Board of Governors of the Federal Reserve System. The 12 Federal Reserve banks are located in Atlanta; Boston; Chicago; Cleveland; Dallas; Kansas City, Missouri; Minneapolis, Minnesota; New York City; Philadelphia; Richmond, Virginia; [...] Federal Reserve System, central banking authority of the United States. It acts as a fiscal agent for the U.S. government, is custodian of the reserve accounts of commercial banks, makes loans to commercial banks, and oversees the supply of currency, including coin, in coordination with the U.S. Mint. The system was created by the Federal Reserve Act, which President Woodrow Wilson signed into law on December 23, 1913. It consists of the Board of Governors of the Federal Reserve System, the 12 [...] The Federal Reserve has broad supervisory and regulatory authority over state-chartered banks and bank holding companies, as well as foreign banks operating in the United States. Through the CFPB, it is also involved in maintaining the credit rights of consumers. One of the longest chairmanships of the Federal Reserve Board was held by Alan Greenspan, who took office in August 1987 and held the post until January 2006. In 2014 Janet Yellen became the first woman to chair the board, and she

• The Fed Explained - Federal Reserve Board

  The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system. Federal Open Market Committee Monetary Policy Principles and Practice Policy Implementation Reports Review of Monetary Policy Strategy, Tools, and Communications Institution Supervision Reports Reporting Forms Supervision & Regulation Letters Banking Applications & Legal Developments Regulatory Resources Banking & Data Structure [...] The 11th edition of The Fed Explained: What the Central Bank Does (formerly The Federal Reserve System Purposes & Functions) details the structure, responsibilities, and work of the U.S. central banking system. The Federal Reserve System performs five functions to promote the effective operation of the U.S. economy and, more generally, to serve the public interest. It includes three key entities: the Board of Governors, 12 Federal Reserve Banks, and the Federal Open Market Committee.

The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America. 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. 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 currently also 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. It 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. 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."