Role of Federal Reserve

The Federal Open Market Committee (FOMC)

is responsible for making monetary policy decisions. The FOMC is composed of members of the Board of Governors and presidents of the twelve Federal Reserve Banks.

goal of the Federal Reserve System

o help the economy achieve stable prices, full employment, and economic growth.

The Federal Reserve System

often called the Fed, is the central banking system of the United States.

the Federal Reserve achieves goals through

Monetary policy Changes in the money supply

Structure of the Federal Reserve

Twelve regional Federal Reserve Banks and their branch offices The Board of Governors The Federal Open Market Committee (FOMC)

he Federal Reserve System's responsibilities include:

conducting monetary policy; supervising and regulating financial institutions; providing services to depository institutions, the federal government, and the public.

Federal Reserve System Tools

open market operations (purchases and sales of government securities).ncreasing or decreasing the discount rate charged on loans it makes to banks (and other depository institutions) and raising or lowering reserve requirements for those same financial institutions.

The Federal Reserve System provides other services including :

supplying paper money and coin to banks processing checks and electronic payments protecting consumers through regulation and education

the Federal Reserve System supervises and regulates banks :

to promote the safety and soundness of the banking system to foster stability in financial markets to ensure compliance with applicable laws and regulations.

Twelve regional Federal Reserve Banks and their branch offices

carry out the day-to-day responsibilities of the Federal Reserve System.

Monetary policy can lead to

changes in the supply of money and the availability of credit

Changes in the money supply can influence overall levels of

spending, employment, and prices in the economy.

structure of the Federal Reserve System helps to ensure

that regional information is represented in national policy decisions and that the Fed remains accountable to the people.

The Board of Governors of the Federal Reserve System,

whose members are appointed by the President of the United States and confirmed by the U.S. Senate, provides leadership for the Federal Reserve System.