The Federal Reserve

Katie Endres

The Fed's Goal and Responsibilities

The Fed's main goal in to keep the economy stabilized. The Fed's responsibilities are to clear checks, supervise banks, and supply money.

History of the Fed

Late 1700's- First money printed to finance the war.

Early 1800's- Congress established the first bank.

Mid 1800's- Congress created the second bank.

Late 1800's- National banking act passes, but a banking panic sent the us into a depression.

Early 1900's- President Wilson signed the federal reserve act of 1913 which was established as the "Fed".

Mid 1900's- Stock market crash occured in 1929 and the great depression occurred and 10,000 banks failed. The 1933 banking act established the FDIC.

Board of Governors

Janet L. Yellen took office as Chair of the Board of Governors of the Federal Reserve System on February 3, 2014, for a four-year term ending February 3, 2018. Dr. Yellen also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policy making body. Prior to her Chair, Dr. Yellen served as Vice Chair of the Board of Governors, taking office in October 2010, when she began a 14-year term as a member of the Board that will expire January 31, 2024.

FOMC and Monetary Policy Tools

FOMC

-Federal Open Market Committee

-Meet 6-8 times each year to discuss monetary policy

-All 7 Board of Governors, NY District bank president, 4 other rotating district bank -- presidents =12 total voting members.

Monetary Policy Tools

-Open market operations

--buying & selling of Gov. Bonds

--Most frequently used

-Discount Rate (bank interest rates)

--Potentially changes a few times a year.

-Reserve requirement

--Cash on hand at each bank.

Inflation/Recession/Depression

Reserve banks

Bank reserves are the currency deposits which are not given out to the bank's clients. A small fraction of the total deposits is held by the bank or deposited with the central bank. Minimum reserve requirements are established by central banks in order to ensure that the financial institutions will be able to provide citizens with cash upon request.

BEP-Bureau of Engraving and Printing

is a government agency within the United States Department of the Treasury that designs and produces a variety of security products for the United States government.

U.S. Mint

The Mint was created by Congress with the Coinage Act of 1792. the first Mint building was in Philadelphia, then the capital of the United States; it was the first building of the Republic raised under the Constitution. Today, the Mint's headquarters are in Washington D.C. It operates mint facilities in Philadelphia, Denver, San Francisco, and West Point, New York and a bullion depository at Fort Knox, Kentucky. Official Mints (Branches) were once also located in Carson City, Nevada, Dahlonega, Georgia, New Orleans, Louisiana,Washington, D.C., and even in Manila, in the Philippines.

Money/ Currency

BEP, Reserve Banks, and the U.S. Mint all make currency(money) so the citizens can have it and so the government can make more money if citizens have more money to spend.