Federal Reserve System

(redirected from The Federal Reserve)
Also found in: Dictionary, Thesaurus, Encyclopedia, Wikipedia.

Federal Reserve System

The monetary authority of the US, established in 1913, and governed by the Federal Reserve Board located in Washington, D.C. The system includes 12 Federal Reserve Banks and is authorized to regulate monetary policy in the US as well as to supervise Federal Reserve member banks, bank holding companies, international operations of US banks, and US operations of foreign banks.

Federal Reserve System

The central bank system of the United States. The Federal Reserve regulates the monetary policy of the United States, especially by setting the discount rate and the fed funds rate and by buying and selling U.S. Treasury securities. It consists of 12 regional banks that operate under the guidance of a Federal Reserve Board, whose seven members are appointed by the President of the United States. The Federal Reserve System has the authority to print money, a controversial measure both now and at the time it was founded. All federally-chartered banks must belong to the Federal Reserve System and purchase a certain amount of stock in the Federal Reserve bank in charge of their particular regions. The Federal Reserve System was established in 1913.

Federal Reserve System

The independent central bank that influences the supply of money and credit in the United States through its control of bank reserves. Federal Reserve actions have great impact on security prices. For example, restriction of bank reserves and lending ability in an attempt to restrain inflation tends to drive up interest rates and drive down security prices over the short run. Also called Fed. See also Federal Open Market Committee.

Federal Reserve System.

The Federal Reserve System, sometimes known as the Fed, is the central bank of the United States.

The Federal Reserve System, which was established in 1913 to stabilize the country's financial system, includes 12 regional Federal Reserve banks, 25 Federal Reserve branch banks, all national banks, and some state banks. Member banks must meet the Fed's financial standards.

Under the direction of a chairman, a seven-member Federal Reserve Board oversees the system and determines national monetary policy. Its goal is to keep the economy healthy and its currency stable.

The Fed's Open Market Committee (FOMC) sets the discount rate and establishes credit policies. The Federal Reserve Bank of New York puts those policies into action by buying and selling government securities.

Federal Reserve System

Often called “the Fed,”it is the central bank of the United States,created in 1913.It regulates credit through the interest rates it charges for short-term loans to financial institutions,supervises and regulates banking institutions,and provides advisory services to the government.Funding comes from interest on investments,fees for services to depository institutions,and interest on loans.The public usually comes into contact with the Fed in two ways:When the Federal Reserve chairman announces interest rate changes for loans to member financial institutions,almost all financial institutions change their interest rates within days afterward.In this way,the Fed controls the cost of credit to consumers.Additionally,it provides a central clearinghouse for checks drawn on different banks across the nation, making it possible for your bank in your home town to give you credit for a check drawn on another bank on the other side of the country.

References in periodicals archive ?
The Federal Reserve System is an independent government agency that helps to oversee the nation's banking system.
Ann Hailey, executive vice president, corporate development, Limited Brands, Columbus, Ohio, was re-elected a director of the Federal Reserve Bank of Cleveland.
As of October 22, 2005, the Portland Branch office of the Federal Reserve Bank of San Francisco will no longer process checks, and banks that are served by that office have been reassigned to the Seattle Branch office of the Federal Reserve Bank of San Francisco.
Moreover, mainstream economists warn that when the Federal Reserve tried to ``fine-tune'' the economy in an effort to stimulate growth during the 1970s it helped set off an inflationary spiral that was brought under control only after a long and painful recession in the early 1980s.
Early preparation and recurring meetings with the Federal Reserve has kept both parties abreast of what's happening in the industry and the specific needs of VSoft customers.
In 2004 and early 2005 the Federal Reserve discontinued cash services through Branches in Little Rock, Arkansas; Louisville, Kentucky; and Buffalo, New York, and established cash depots in those cities.
The senators have sought ways to require more accountability from the Federal Reserve, which at its founding in 1913 was granted the freedom to operate with no direct oversight from Congress as a means of ensuring its independence in setting interest-rate policy.
And it said that the Federal Reserve, which operates with no oversight of its internal finances, had accumulated, with little justification, a $3.
The Federal Reserve Board announced on April 25, 2005, the execution of a written agreement by and between the Civitas BankGroup, Inc.
As large banks cut their prime lending rates, similar reductions are likely to follow in mortgages, home equity loans, small-business loans and some credit card balances, and a number of economists said they expected the Federal Reserve and private lenders would continue trimming rates over the next several months.