The U.S. Federal Reserve (Fed)
Federal Reserve System (Fed) - The Federal Reserve (Fed) serves as the U.S. central bank. The Fed was founded December 23, 1913 on the basis of the Act of the Federal Reserve System.
From the beginning of the Federal Reserve System, its priorities have coincided with the direction of national economic and financial policies.
The development of monetary policy and its realization by the Board of Governors (Board of Governers) of the Federal Reserve and the Committee on the Open Market (Federal Open Market Committee, FOMC).
Board of Governors Federal Reserve sets the discount rate (Discount rate), and the federal funds rate (Federal funds rate), as well as banks' reserve requirements.
Center of the organization of the Federal Reserve is the "Governing Council" in Washington. The main function of the Council is to form a monetary policy. In addition, the Board regulates and supervises the activities of banking institutions and operations of the Federal Reserve Banks. The Council has the functions of the national payment mechanism and federal regulation of consumer credit. The Council consists of 7 members appointed by the president and confirmed by the Senate. Full term of the member of the Board - 14 years. And the seven dates arranged so that the term of a member ends in each even-numbered year (February 1). You can not be re-appointed after full-term work.
The Council has an extensive supervisory role over the operations of 12 federal reserve banks. This function enables monitoring of their activities on service depository institutions, as well as verification and control of some banks. Each bank must submit its budget for approval. Some items of expenditure (eg for construction, or reconstruction of buildings of the bank payroll president and first vice-president) shall be subject to special approval by the Board. Appointment of President and First Vice-President of each federal reserve bank, approved by the Board.
Operations Committee on the open market (Federal Open Market Committee - FOMC)
Operations Committee is responsible for the transactions carried out by the Fed. Transactions in government securities and federal agencies - to increase or reduce the reserve funds of deposit institutions. The Committee also gives permission for the operation, and leads them in overseas foreign exchange markets.
The committee consists of seven members of the Board of Governors and the presidents of five Reserve Banks, one of whom is the president of the Federal Reserve Bank of New York. Presidents of other banks are on the committee for one year under the rotation.
Despite the fact that the Committee is a body of formally independent from the Board of Governors, by tradition it elects its Chairman, Board Chairman and Vice-President - the President of the Federal Reserve Bank of New York.
Members of the Committee for Open Market in 2006:
On February 31, 2006 Ben Bernanke (Ben S. Bernanke) (until February 31, 2006, Alan Greenspan), a member of the Board of Governors, Chairman of the U.S. Federal Reserve
Timothy T. Geithner, Federal Reserve Bank of New York, Vice-Chairman
Susan Schmidt Bayaz - Board of Governors Federal Reserve System.
Roger W. Ferguson - Board of Governors Federal Reserve
Richard W. Fisher - Federal Reserve Bank of Dallas
Donnald L. Kohno Fed Board of Governors
Michael H. Moscow - Federal Reserve Bank of Chicago
Mark Olson In - Board of Governors Federal Reserve
Anthony M. Santomero - Federal Reserve Bank of Philadelphia
Gary H. Stern - - Federal Reserve Bank of Minneapolis
Alternate members
Jack Gunn - Federal Reserve Bank of Atlanta
Jeffrey M. Laqueur Federal Reserve Bank of Richmond
Sandra Pianalto - Federal Reserve Bank of Cleveland
Janet Ellen - Federal Reserve Bank of San Francisco
Janet Ellen - Federal Reserve Bank of San Francisco
Christine M. Cumming, First Vice President, Federal Reserve Bank of New York
