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.

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.

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 ?

One of which, (obtained during the discovery stage of the case), is the revelation in the official minutes of the US Federal Reserve Bank that the secretive fund of the US Treasury, called the Exchange Stabilization Fund (ESF), had been used to intervene in the gold market to the detriment of gold producers, especially in Africa.

Arm-twisting Africa: ...Startling revelations at the GATA African Gold Summit in Durban. (Cover story 2: Gold Special Report)

For this reason, the US Federal Reserve Bank's chair has consistently been drawn from among the country's respected economists.

Second most important post?

After data showed that the US economy grew by 4% in the second quarter, investors have begun to worry that the US Federal Reserve Bank will increase interest rates sooner rather than later.

Index falls amid worry over US Federal Reserve; FTSE 100 TOM SOLLY Brewin Dolphin

The US Federal Reserve bank disappoints emerging markets; US corporate profits are healthy but losing momentum in some sectors; Japanese equities will correct as the JPY strengthens; but this is temporary; financial markets will probably stay risk-averse in February 2014; take partial trading profits on profitable positions in global growth equities; financial sector main beneficiary of improving GCC economy - stay invested.

The return of risk-on/risk-off market swings

"Yet, since the US Federal Reserve Bank announced that it would delay the tapering of quantitative easing, yields dropped and we are seeing an uptick in investor interest in sukuk that companies are proposing to launch--in the GCC as well as Malaysia," said Standard & Poor's credit analyst Karim Nassif.

S&P sees solid corporate and infrastructure sukuk volume next year

The US Federal Reserve bank has signalled that it will soon begin winding down its special programme of injecting funds to support the US economy.

Turkish lira at record low, threatening growth

A day earlier, US Federal Reserve bank chairman, Ben Bernanke, defended his bank's asset purchases programmes and downplayed signs of internal divisions.

-Stocks boosted by assurances from central banks

This unilateral move is the first reduction since December which came in response to cuts made by the US Federal Reserve bank.

Bahrain cuts key rates to stimulate economy

THE major factor moving the world's stock markets over the past seven days, has been the chairman of the US Federal Reserve Bank, Alan Greenspan's decision to only reduce US interest rates by % (the market was looking for %).

Beer shares leaving a bitter aftertaste; ANALYSIS

Statistics published by the US Federal Reserve Bank showed deposits from Mexican nationals in US banks grew to US$38.87 billion last year, an increase of 12% from 1997.

MEXICAN DEPOSITS IN U.S. BANKS INCREASE TO US$38.87 BILLION

IN JUST a week last February, $81 million was: transmitted to four accounts in RCBC Jupiter in Makati City from the dollar account of the Bangladesh central bank at the US Federal Reserve Bank; withdrawn and consolidated into another account in the same local bank; exchanged into pesos through a local remittance company; and delivered to junket operators at Solaire and other local casinos.

Ease bank secrecy

The US Federal Reserve Bank had lowered forecast interest rate hike for next month.