The Federal Reserve and Its Monetary Policy
The Federal Reserve and Its Monetary Policy
The United States Federal Reserve Bank was found in 1913. The Federal Reverse Bank was created after congress passed the Federal Reserve act. This was because of financial panics that kept happening manly the financial panic of 1907. The United State attempted to set up this bank before but it was always shut down after 20 years. The Federal Reserve Act is also known as the Glass-Owen Bill. The Republican controlled Senate pushed the bill through when many members of the US Congress were home for the holiday. The President Woodrow Wilson signed it into law one hour after being passed by the congress (Krautkramer).
The Federal Reserve System is an independent central bank. Although the President of the United States appoints the chairman of the Federal Reserve Bank, and this appointment is approved by the United States Senate, the decisions of the Fed do not have to be ratified by the President, or anyone else in the executive branch of the United States government. Also in the act was the granted the Federal Reserve Bank total power over the monetary policies of all US banks (Krautkramer).
The task of the Federal Reserve System is to maintain employment, keep prices stable, and keep interest rates at a reasonable level by regulating monetary policy. Components of the Federal Reserve System also supervise banks, provide financial services, and conduct research on the United States economy and the economies in the surrounding region. The Fed consists of the Board of Governors in Washington, D.C., and twelve Federal Reserve District Banks. The federal bank 12 main districts are located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis Kansas City, Dallas, and San Francisco. New York is the main one because that is where most of the biggest banks in the United States are located(Krautkramer).
The seven Governors on the Federal Reserve Board are appointed by the President of
The United States Federal Reserve Bank was found in 1913. The Federal Reverse Bank was created after congress passed the Federal Reserve act. This was because of financial panics that kept happening manly the financial panic of 1907. The United State attempted to set up this bank before but it was always shut down after 20 years. The Federal Reserve Act is also known as the Glass-Owen Bill. The Republican controlled Senate pushed the bill through when many members of the US Congress were home for the holiday. The President Woodrow Wilson signed it into law one hour after being passed by the congress (Krautkramer).
The Federal Reserve System is an independent central bank. Although the President of the United States appoints the chairman of the Federal Reserve Bank, and this appointment is approved by the United States Senate, the decisions of the Fed do not have to be ratified by the President, or anyone else in the executive branch of the United States government. Also in the act was the granted the Federal Reserve Bank total power over the monetary policies of all US banks (Krautkramer).
The task of the Federal Reserve System is to maintain employment, keep prices stable, and keep interest rates at a reasonable level by regulating monetary policy. Components of the Federal Reserve System also supervise banks, provide financial services, and conduct research on the United States economy and the economies in the surrounding region. The Fed consists of the Board of Governors in Washington, D.C., and twelve Federal Reserve District Banks. The federal bank 12 main districts are located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis Kansas City, Dallas, and San Francisco. New York is the main one because that is where most of the biggest banks in the United States are located(Krautkramer).
The seven Governors on the Federal Reserve Board are appointed by the President of
Cited: Feldstein, Martin. "What Powers for the Federal Reserve?" The National Bureau of Economic Research. 2 Nov. 2010. Web. 10 Dec. 2011 Krautkramer, Wayne N. "The Federal Reserve - Its Origins, History & Current Strategy." GoldSeek.com. Web. 10 Dec. 2011 "The Federal Reserve System." The Federal Reserve System. Cnchost. Web. 10 Dec. 2011. "U.S Monetary Policy." San Franisco Federal Reserve. Federal Reserve Bank of San Francisco, 2004. Web. 10 Dec. 2011.