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The Federal Reserve System. The FED. Is the central bank of the United States. Privately owned Publicly controlled Was created by Congress to provide the nation with a more stable monetary and financial system. Federal Reserve notes. The FED. Derives its authority from the U.S. Congress
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The FED • Is the central bank of the United States. • Privately owned • Publicly controlled • Was created by Congress to provide the nation with a more stable monetary and financial system. • Federal Reserve notes
The FED Derives its authority from the U.S. Congress Independent central bank It does not receive money from Congress It is subject to oversight by Congress
Private Ownership • Private banks are members of the Federal Reserve System. • The FED is owned by private banks, not the government. • It is the bank’s bank.
Reserve Banks hold the cash reserves of depository institutions and make loans to them move currency and specie (coins) into and out of circulation, and collect and process millions of checks each day
provide checking accounts for the Treasury supervise and examine commercial banks setting of monetary policy. destroy worn out money
The Board of Governors The seven members of the Board of Governors are nominated by the President and confirmed by the U.S. Senate. No two Governors may come from the same Federal Reserve District. The full term of a Governor is fourteen years
Chairman Jerome Powell (since Feb. 2018) • Is chosen by the President from among the sitting Governors and must be confirmed by the Senate. • They serve terms of four years • The Chairman serves as public spokesperson, representative of the Board, manager of the Board's staff, and presides at Board meetings.
https://www.youtube.com/watch?v=y1OJlJ9COg0 Answer questions on handout
Source www.federalreserve.gov
