This essay focuses on objectives of the Federal Reserve System.What means does it have in controlling monetary policy, i.e. rates, reserve requirements, etc. What metrics would you use to determine the success, or failure of our central bank.
The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to the desire for central control of the monetary system in order to alleviate financial crises.
in the Federal Reserve Act: maximizing employment, stabilizing prices, and moderating long-term interest rates. The first two objectives are sometimes referred to as the Federal Reserve’s dual mandate. Its duties have expanded over the years, and currently also include supervising and regulating banks. Maintaining the stability of the financial system, and providing financial services to depository institutions, the U.S. government, and foreign official institutions. The Fed also conducts research into the economy and provides numerous publications .Such as the Beige Book and the FRED database.
The Federal Reserve System is compose of several layers. It is govern by the presidentially appoint board of governors or Federal Reserve Board (FRB). Twelve regional Federal Reserve Banks, located in cities throughout the nation. Regulate and oversee privately owned commercial banks. Nationally charter
Elect some of the board members of, the Federal Reserve Bank of their region. The Federal Open Market Committee (FOMC) sets monetary policy. It consists of all seven members of the board of governors. Twelve regional Federal Reserve Bank presidents. Five bank presidents vote at a time (the president of the New York. Fed and four others who rotate through one-year voting terms). There are also various advisory councils. Thus, the Federal Reserve System has both public and private components.
Firstly, be keen
Secondly, be cautious