Federal Reserve Wikipedia

Federal Reserve Wikipedia: TheFederal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of the United States. It was created in 1913 with the enactment of theFederal Reserve Act, and was largely a response to a series of financial panics, particularly a severe panic in 1907. Over time, roles and responsibilities of theFederal Reserve has increased and its structure has evolved. Events such as the Great Depression were the main factors leading to changes in the system. His duties today, according to official documentation of the Federal Reserve, are driving the nation's monetary policy, supervising and regulating banking institutions, maintaining financial system stability and provide financial services institutions filing, the government of the United States, and foreign official institutions.

The structure of the Federal Reserve System is composed of the presidentially appointed Board of Governors (or Federal Reserve Board), the Federal Open Market Committee (FOMC), twelve regional Federal Reserve Banks in major cities across the country, many other private banks member U.S. and various advisory boards. The FOMC is the committee responsible for monetary policy and consists of seven members of the Board of Governors and presidents of the twelve regional banks, although only five bank presidents vote at some point time . This division of responsibilities of the central bank is divided into several distinct and independent, some public and some private. The result is a structure that is considered unique among central banks. It is also unusual in an entity (the U.S. Department of Treasury) outside of the central bank creates money used.

According to the Board of Governors, the Federal Reserve is independent of the government because "its decisions do not have to be ratified by the president or anyone else in the executive or legislative branches of government." However, his authority is derived from the U.S. Congress and is subject to congressional oversight. In addition, members of the Governing Council, including its chairman and vice chairman, are appointed by the President and confirmed by Congress. The government also exerts some control over the Federal Reserve in appointing and setting the salaries of higher-level system. Thus, the Fed has two private and public aspects. The U.S. government receives the total annual benefits of the system, after a statutory dividend of 6% on capital investment banks are paid members and a surplus is maintained. The Federal Reserve has transferred a record $ 45 billion the U.S. Treasury in 2009.