The Federal Reserve

The Fed's Goal and Responsibilities

The main goal of the fed is to stabilize the economy while it also makes important decisions that effect our economy.

The Fed is not public nor is it private.

History of the Fed

Late 1700's: The first money was printed to fiance the war

Early 1800's: Congress established the first bank

Mid 1800's: Congress chartered the second bank

Late 1800's: The National banking act passed but a banking panic sent the US into a depression

Finally in the early 1900's President Woodrow Wilson signed the federal reserve act of 1913 which established The Fed.

Board of Governors

  • Serve a 14 year term.
  • Responsibilities include: clearing checks, supervising banks and supplying money.
  • Janet Yellen is the current chairperson.
  • There are 12 District Banks.
  • They are located in:

San Francisco



St. Louis



Kansas City




New York


The FOMC and The Monetary Policy

The FOMC stands for Federal Open Market Committee

The FOMC meets 6-8 times each year to discuss Monetary Policy

The total number of voting members is 12.

  • All 7 board of governors
  • New York District Bank President
  • 4 other rotating district bank presidents

Inflation, Recession, and Depression

Inflation- Rising of prices

Recession- Bad, high unemployment

Depression- Really bad, long term recession

Reserve Banks

A Reserve Bank acts as the service division that carries out the policy and oversees financial institutions.

Bureau of Engraving and Printing

Located in Washington D.C. and in Texas.

The BEP prints paper currency

U.S. Mint

The U.S. Mint makes all of our coins.

If you have a coin it will either have a D or P on it for Denver or Pennsylvania.

Located in San Francisco, Denver, Fort Knox, New York, and Pennsylvania.

Each place does something different.

San Francisco and New York make commemorative coins, Denver and Pennsylvania spend coins daily and Fort Knox stores gold.


Without The Fed there would be 30,000 different currencies floating around The United States like in 1913. They could be issued anywhere at anytime to almost anyone. The problem with that is that some currencies would cost more than others, some would be backed by silver or gold, and others by government bonds.