Federal Reserve System

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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 Board on May 27, 2004, announced the issuance of a consent order to cease and desist and order of assessment of civil money penalty against Citigroup Inc.
The Federal Reserve will continue to leverage our new FedImage technologies and work with CheckClear and the other electronic exchanges as they move into production, to provide cost efficient check image exchange to financial institutions across the country," stated Fred Herr of the Federal Reserve's Retail Payments Office.
Fee schedules for all priced services will be available on the Federal Reserve Banks' financial services web site at www.
When I take a group on a tour, at the end, I want them to understand the Federal Reserve System,'' she said.
Any politician who dares to become a critic can count upon damaging attacks from both editorial writers and news reporters, accusing him or her of "political meddling" with the non-political Federal Reserve.
A notice of suspension and prohibition was issued under a provision of the Federal Deposit Insurance Act that authorizes the Federal Reserve Board and other bank regulators to limit the activities of bank officials who have been charged with certain criminal offenses pending the resolution of the charges.
Greenspan and his colleagues on the Federal Reserve Board are equally dismissive of the pro-growth advocates, saying that those who are calling for lower rates misunderstand the economy's problems and the role of monetary policy, and overstate the Federal Reserve's ability to influence long-term growth.
Pittsburgh, Pennsylvania, was appointed chairman of the board of the Pittsburgh Office of the Federal Reserve Bank of Cleveland for 2007.
But Greenspan, who is normally treated with considerable deference when he appears before Congress, came in for sharper than usual questioning about the congressional report on the Federal Reserve, which was compiled over the past two years by the nonpartisan General Accounting Office and issued Monday by two Democratic senators, Byron Dorgan of North Dakota and Harry Reid of Nevada.
The Federal Reserve Banks offer a full range of financial services to assist depository institutions in achieving a sustainable competitive advantage.
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.
While it contains no direct criticism of Greenspan and does not address the monetary policy pursued by the Federal Reserve under his leadership, the report provides an unusually detailed look inside an institution with enormous power and, critics contend, insufficient accountability.

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