The Federal Reserve

By: Grace Odegaard

The Fed

The Federal Reserve, aso known as the Fed, is the central bank in the United States. It was created by Congress to provide the nation with a safer and more felxible monetary and financial system. It was created December 23, 1913, when President Woodrow Wilson signed the Federal Reserve Act. The Fed regulates how many dollar bills and coins are in circulation. The Fed supervises the twelve distirct banks. There are 12 district banks that make up The Fed. Each of these banks serves a certain part in the country. These bank is are like a bank for banks. The twele banks are located in Boston, New York, Philadelphia, Richmond, Atlanta, Dallas, Kansas City, St. Louis, Chicago, Cleveland, Minneapolis, and San Francisco.

The Board of Governors

There are seven board of governors. These people are nominated by the president and confirmend in by the senate. There is a chairman and a vice-chairman of the borad. Our current chairman is Ben Bernanke. The board of govenors supervises and regulates the operations of the Federal Reserve banks. The offices of the board of govenors are spread throughout Washington D.C. The two main structures are the Marriner S. Eccles Building and the William McChesney Martin, Jr. Building.

FOMC

FOMC stands for the Federal Open Market Commitee. The Federal Open Market Committee the monetary policymaking body of the Federal Reserve System. The FOMC is composed of 12 members, the seven Board of Governors and five of the 12 Reserve Bank presidents. The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy. The Federal Reserve controls the three tools of monetary policy, open market operations, the discount rate, and reserve requirements. The FOMC alters the federal funds rate. The federal funds rate is the interest rate at which depository institutions lend balances at the Federal Reserve to other depository institutions overnight. This can change employment, output, and prices of goods and services.

The Bureau of Engraving and Printing

The Bureau of Engraving and Printing makes and prints all of the dollar bills in circulation. They take teh worn out bills out of curculation and put new ones in. It also helps in the production process of counterfiet deterrent technologies.

U.S. Mint

The U.S. Mint is responsible for making all of the coin in curculation. You can tour the U.S. Mint in Philedelphia or Denver. There are six steps to making a coin: blanking, annealing and washing and drying, upsetting, striking, inspecting, and countign and bagging.