THE FED
How they control EVERYTHING..........................(kinda)
The Federal Reserve:
The Federal Reserve is able to influence the economy by encouraging or discouraging business practices. Keep in mind- the Fed controls EVERYTHING. The Fed controls the Reserve banks which controls the 38% out of 8,039 commercial banks in the United States. Non-member and non-commercial banks are still under Fed policies, and therefore, kind of under their rein. no bank is safe- commercial or not.
Federal Open Market Committee
Over the next 5 years, I am going to be going to become an adult, move out, go to college, graduate, and perhaps purchase a house. At the moment, i am using a Credit Union for my primary banking needs. When I move out, I will be moving away from said Credit Union to a more popular area, so it's likely that I will have to move my banking to a commercial branch, and therefore, will probably be connected to a Reserve Bank, especially if I choose to go to Richmond for college. With that being said, when I eventually try to take out a loan for a house, whether in the next 5 years or not- the Fed will directly affect how that happens because the Regional banks keep a close eye on the member banks and how they deal with their money.
Summary:
- The Fed is the main bank of the United States
- Reserve Banks are placed in districts that allow them to keep a close eye on member, commercial, and non-commercial banks in that region.
- Member banks are directly connected to the local Reserve Bank, and they even hold stock in those banks that they cannot invest or share.
- Commercial and non-commercial non-member banks still have to adhere to the Fed's rules, regulations, and specifications, despite not being directly connected and holding stock