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?
Board of Governors
Is a group of 7 public elected officials who are appointed by the President and approved by Congress. When they are appointed they serve a 14 year term. The current chairperson of the board is Janet Yellen. "Public"
NY District Bank President
Four District Bank Presidents
There is 12 District Banks and each one has a president that maintains and looks over their district. Since there is 12 every so often they swap who is part of the FOMC so that every district bank president gets a chance in their term to be on.
BEP
Bureau of Engraving & Printing
~located in Washington D.C. and Texas
~Prints our paper money
~clear checks
U.S. Mint
~ Has Several Facilities
~produces the coins
Money/ Currency
Before USD for our common currency their was a bunch of made up currency's. So you could go to one state they have a different currency go to another you have another one that is different.
It wasn't until 1785 when Congress adopted the dollar as the money unit of the U.S.
Eventually we introduce coin money and Establishment of the U.S. Mint in 1792.