What is Fed?

The federal reserve system or "Fed", as is sometimes known, is the United States Central Banking System. This institution has a number of functions in the US economy, with the primary goal of setting economic policies from which the United States will benefit and maintain the US economy healthy and stable. As Ben Bernanke led the Fed as a chairman, with a deadline expected to expire in 2010. Alan Greenspan, which served more conditions as chairman of the Federal Reserve Governors from 1987 to 2006. It is trying to cope with the need for private banks with the needs of the American people and the US government.

by determining monetary policy, Fed hopes that the US economy will maintain stable, but sometimes it is necessary to intervene. The Fed may proceed forward to reduce interest rates or make other changes in policy, and also act as a creditor of the last option in the financial Krisks. The Fed delivers liquidity to the liquidity of banks throughout the United States, helps maintain the supply of currency stable, regulates private banks and provides protection to consumers.

There are several aspects in the Fed. At the peak of the Fed's power structure, there is a council of governors, a seven -member group of individuals named by the President of the United States to serve 14 -year conditions. According to tradition, the Chairman of the Governor Council is selected from the members of the Board of the President of the United States, and the chairman acted in this capacity for four years and then returned to a regular position in the Governors Council.

There are 12 federal reserve banks under Chicago, New York, San Francisco, Boston, Philadelphia, Atlanta, Richmond, Minneapolis, Dallas, Kansas City, Saint Louis and Cleveland. Each bank oversees part of the United States with its own governor council.

between the Presidently Council of GUThe Federal Committee on the Open Market, the Fed Political Committee, can be found in the Fedu hierarchy. The Open Market Committee includes seven members of the Board of Directors, along with five rotating members taken from the councils of federal reserve banks. The federal reserve system also includes private membership banks and additional council of advisors that help banking policy and predict the future of the US economy.