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.
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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The Fed and the Government Accounting Office are looking at where the central banking system succeeded and where it could have performed better.
Meyer, one of the nation's top forecasters, said he was concerned that the Fed hadn't given the interest rate cuts time enough to work.
Looking ahead, perhaps the greatest challenge facing Greenspan is whether the Fed will be able to work effectively with the new Bush administration to establish an optimal fiscal-monetary policy mix at a time when the economy is rapidly losing momentum.
Until December 19, 2000, the Fed was complacently watching supply drop.
That a reporter with Woodward's reputation and skill at ferreting out high-level political gossip couldn't pry new secrets out of the Fed is proof of how hard it is for the uninitiated to penetrate the arcane business of central banking.
There had been concern among economists and the Fed's board members that if home prices leveled off or even worse, plummeted as a result of a housing bubble, consumer spending would dip.
Because Greenspan rarely gave interviews to journalists for direct quotation, Hartcher's book contains no interview with the Fed chairman.
Importantly, during the deflation scare of 2003 this measure never fell below 1.5 percent on an annual basis--meaning it never dipped into the bottom half of the Fed's preferred 1 to 2 percent inflation range.
But how closely is the futures rate related to what the fed funds rate turns out to be?
In contrast to two other books I've read on The Fed, the bank is described here as a creature of Congress.