The Purpose of the Federal Reserve System Essay -- The Fed and the Eco

Over the past few years we have agnize the impact that the federal official giving medication has on our economy, yet we never knew copious about the champaign to understand why. While taking this Economics charge it has brought so many things to our attention, especially since we see inflation, gas prices, unemployment and interest evaluate on the rise. It has given us a fall in understanding of the burden of the Government on the economy, the stock market, the interest order, etc. Since the federal Government has such a control over our Economy, we decided to tackle the subject of the Federal unobtrusiveness dodge and try to get a better understanding of the history, the structure, and the monetary policy of the power that it holds. The Federal take for brass is the central banking authority of the United States. It acts as a fiscal gene for the United States government and is custodian of the reserve accounts of commercial banks, makes loans to commercial banks, and is accredited to issue Federal Reserve notes that constitute the entire supply of story currency of the country. Created by the Federal Reserve Act of 1913, it is comprised of 12 Federal Reserve banks, the Federal Open foodstuff Committee, and the Federal Advisory Council, and since 1976, a Consumer Advisory Council which includes several thousand member banks. The board of Governors of the Federal Reserve strategy determines the reserve requirements of the member banks within statutory limits, reviews and determines the discount rates established pursuant to the Federal Reserve Act to serve the macrocosm interest it is governed by a board of nine directors, six of whom atomic number 18 elected by the member banks and three of whom are appointed by the Board of Governors of the Federal Reserve System. The Federal Reserve banks are fit(p) in Boston, New York, Philadelphia, Chicago, San Francisco, Cleveland, Richmond, Atlanta, Saint Louis, Minneapolis, Kansas City and Dallas. The Federal Open Market Committee, consisting of the seven members of the Board of Governors and five members elected by the Federal Reserve banks, is responsible for the determination of Federal Reserve Bank policy in the purchase and sale of securities on the open market. The Federal Advisory Council, whose enjoyment is purely advisory, consists of 12 members if they meet membership qualifications. The Federal Reserve System exercises its regulatory powers in seve... ...erve. We feel that the latter is on the radical billet of thinking, and that overall the Federal Reserve has the best interest of the nation and outside(a) economy in all their decisions regarding the increases in interest rates, etc. Since the fire of the Federal Reserve we have not gone into a major(ip) depression, and over a course of time there go out be times when our economy will peak and boom and the Fed will feel that it is time to slow the economy by raising the rates. Bibliography cater 101 Hosted b y The Federal Reserve Bank of Kansas City. http//www.kc.frb.org/fed101Friedman, Milton and Jacobson Schwartz, Anna. A pecuniary level of the United States, 1867-1960. Princeton, 1963Hailstones, Thomas and Rothwell, John. Managerial Economics, 1993. Prentice Hall, 1993Metzler, Allan H. A History of the Federal Reserve, Vol I and II. University Press Books, 2002National Information Center for the Federal Reserve System. http//www.ffiec.gov/nicRabboh, Bob and Bartson, Ronald J. Principles of Economics. Pearson, 2002The Federal Reserve Board. http//www.federalreserve.govThe Federal Reserve System Online. http//www.federalreserveonline.org