The Federal Reserve Actions

The Federal Reserve Actions

Introduction

The Federal Reserve System is the central system of the United States, which is commonly called Fed. It is completed with the Board Governors, 12regional Federal Reserve Bank, the Federal Open Market Committee (FOMC), a number of member banks (Member mandatory above a certain size) and other institutions. As the member banks through their deposits by value are the owners of the Federal Reserve, but the Board of Presidents of the United States shall be appointed, the Federal Reserve System is a hybrid of private and state structure.

The main responsibilities of the Federal Reserve are:

Supervision and regulation of banking

Implementation of monetary policy through open market operations, adjustment of the discount rate and the change in reserve

Maintaining a functioning payment system

Monitoring the amount of money that is made ??daily and destroyed in collaboration with the Mint United States Mint and the Office for embossing and printing

Publication on the economy “Beige Book ".

Monetary policy Actions of the Federal Reserve

The objectives of the monetary policy of the Fed are in the Federal Reserve Act defines:

High level of employment

Price stability

moderate long-term interest rates

Monetary policy instruments

Open market operations

Discount credit

Reserve

The Federal Reserve Actions regulates activities, powers and composition of the Federal Reserve. The law was signed and promulgated by President Woodrow Wilson on 23 December 1913

System

The Fed is an independent public agency of the U.S. government, and journalistic purposes with some aspects of private persons. The Fed is considered an independent central bank because its decisions have not been ratified by any organ of the executive or legislative action. In addition, the Board members once appointed cannot be removed until the expiry of their mandate. The 12 regional federal banks represent the joint operation of the central banking system of the United States and are organized as private ...