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.
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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.
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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.

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References in periodicals archive ?
In addition, the Federal Reserve Board and the Alabama Superintendent of Banks concurrently issued a cease and desist order requiring AmSouth Bank and its parent bank holding company, AmSouth Bancorporation, to take certain corrective actions.
As of July 10, 2004, the San Antonio office of the Federal Reserve Bank of Dallas no longer processes checks, and banks served by that office for check-processing purposes were reassigned to the Reserve Bank's head office in Dallas.
This act prohibits the Federal Reserve or any of its employees or agents (including NORC) from using the information provided by a participant for any nonstatistical purpose, or from disclosing the information in a way that would identify the participant without the participant's consent.
The Federal Reserve Board on June 17, 2004, announced the issuance of a final decision and order of prohibition against Stephanie Edmond, a former employee of First Tennessee Bank, N.A., Memphis, Tennessee, as well as Bank of America, N.A., Charlotte, North Carolina.
This trend, which is consistent with the Federal Reserve's position of encouraging the use of more efficient electronic payment alternatives, has reduced the Reserve Banks' check volume.
PHILLIPS Dean and Professor of Finance, School of Business and Public Management, George Washington University, and former member of the Federal Reserve Board of Governors
On February 22 the Federal Reserve System gave United Bank 90 days to review how the company was being managed, 60 days to disclose the bank's capital, and 60 days to craft a strategic plan and formulate procedures that would strengthen its internal controls.
So, if Congress is serious about reforming the Federal Reserve, it will necessarily have to think about changing more than the institutional behavior of the Fed.
The Federal Reserve Board announced on September 20, 2005, the issuance of a final decision and order of prohibition against Brian Bonetti, a former employee of National City Bank, Cleveland, Ohio.
As of June 18, 2005, the Salt Lake City 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 Denver Branch office of the Federal Reserve Bank of Kansas City.
These changes are part of a broader effort to update the Federal Reserve's infrastructure for processing currency.
"The Federal Reserve has a long history of promoting economic education and financial literacy.