2. The Federal Reserve What is the Federal Reserve System?
It is the central bank of the United States
When was the Federal Reserve Created?
It was created on December 23, 1913 with the signing of the Federal Reserve Act by Wilson

3. The Federal Reserve What are the Federal Reserve’s Responsibilities?
Conducting the nations monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices
Supervising and regulating banking institutions to ensure the safety and soundness of the nation’s banking and financial system

4. The Federal Reserve What are the Federal Reserve’s Responsibilities?
Maintaining the stability of the financial system and containing systematic risk that may arise in financial markets
Providing certain financial services to the U.S. government, to the public, to financial institutions, and to foreign official institutions

5. The Federal Reserve How is the Federal Reserve System structured?
Board of Governors
Operate out of Washington DC
consists of seven members who are appointed by the president and confirmed by the senate
Typically economists or business/banking leaders with extensive understanding of the national economic and financial system
Charged with overseeing the 12 District Reserve Banks and helping implement national monetary policy

6. The Federal Reserve How is the Federal Reserve System structured?
Twelve regional Federal Reserve Banks located in major cities throughout the nation.
Each Federal Reserve branch office has its own board of directors, composed of three to seven members.
Provide vital information concerning the regional economy

7. The Federal Reserve Who owns the Federal Reserve?
It isn’t “owned” by anyone
It is an independent entity within the government, having both public and private purposes
Derives its authority from Congress
All nationally charted banks and some state chartered banks hold stock in the Federal Reserve (Fed Stock). These banks are called Member banks
Fed Stocks can’t be sold or traded but Member banks receive a fixed 6 percent dividend annually on their stock

8. The Fed as Inflation Fighter
The Feds most important job is making sure there is enough money and credit to allow the economy to grow, but not so much money that the currency loses its value.
INFLATION a general rise in prices of goods and services, which reduces the purchasing power of money.
Monetary policy is to fight inflation so that the economy can grow.