Federal Reserve

By Caleb Fisher

What is the Fed?

The Fed is the central banking system of the U.S. that makes important decisions that affect our economy. The Fed is made up of a Board of Governors and the 12 District banks. It was established in 1913 by the signing of the Federal Reserve Act by President Woodrow Wilson.

Goal and Responsibilities

Their main goal is to Stabilize the economy.

Their responsibilities include clearing checks, supervising banks, and supply money.

FOMC

Federal Open Market Committee meet 6-8 times a year to discuss monetary policy. Somethings they may decide to do for during these meetings.

1. Open Market Operations 2. Changing Discount Rate 3. Changing Reserve Requirement

Reasons they may make these changes would be because:

~Inflation-when prices are rising to quickly (Normal)

~Recession-sluggish economy, high unemployment (Bad)

~Depression-a severe recession, long term (Really Bad)



Below Pictures: Who is in the FOMC?