Who owns the FED? A summary

Short answer to “Who owns the FED?” The American People

Long answer The Fed is organized as a private company, but has a public mandate Its organizational structure is very complex. The Fed was created by the Federal Reserve Act of 1913

American people 3,400 Member banks5,000 Non-member banks Board of Governors

Federal Reserve districts Source: Courtesy of Federal Reserve System

The Board of Governors of the Federal Reserve System The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate A full term is fourteen years. A member who serves a full term may not be reappointed. The Chairman and the Vice Chairman of the Board are selected by the President from among the members and are confirmed by the Senate. They serve a term of four years.

Reserve Banks’ boards of directors Class A directors represent the member commercial banks in the District are elected by member banks in the district cannot become members of Congress Class B are selected to represent the public are elected by member banks in the district cannot become members of Congress, officers, directors, or employees of a bank Class C directors are selected to represent the public are elected by member banks in the district cannot become members of Congress, officers, directors, or employees of a bank cannot own stock in a bank must reside in the district for at least two years before their appointment Because a Reserve Bank directorship is a form of public service, directors are also expected to avoid participation in partisan political activities.