THE FEDERAL RESERVE BANKING SYSTEM IS NOT PART OF THE GOVERNING BODY OF THE UNITED STATES. THE FEDERAL RESERVE BANK PROVIDES A SERVICE TO THE GOVERNMENT. As the nations central bank, the Federal Reserve derives its authority from the Congress of the United States. It is considered an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms... What is the purpose of the Federal Reserve System? The Federal Reserve System, often referred to as the Federal Reserve or simply the Fed, is the central bank of the United States. It was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Federal Reserve was created on December 23, 1913, when President Woodrow Wilson signed the Federal Reserve Act into law. Today, the Federal Reserves responsibilities fall into four general areas. 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 banks and other important financial institutions to ensure the safety and soundness of the nations banking and financial system and to protect the credit rights of consumers. Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets. Providing certain financial services to the U.S. government, U.S. financial institutions, and foreign official institutions, and playing a major role in operating and overseeing the nations payments systems.. (federalreserve.gov/faqs/about_12594.htm)
Posted on: Sat, 20 Sep 2014 20:52:43 +0000
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