The Federal Reserve System was established in 1913. It is run by the Federal Reserve Board. The Federal Reserve System was created in following an era marked by financial distress and economic depression. They provide financial services to the government, the general public, and financial institutions. Its principal goal then was economic stability. This goal is still important today, along with current objectives such as stable prices, high employment, and economic growth. As it carries out its responsibilities, the Federal Reserve is independent within the government and generally is not involved with day-to-day problems. However, the Federal Reserve was indeed created by Congress. The members of the Board of Governors, are appointed by the President and confirmed by the Senate. Generally, whatever the Federal Reserve makes, are returned to the United States Treasury. Of course, the Federal Reserve is broadly involved in the nation's political processes. The Federal Reserve was designed to be insulated from short-run political and economic pressures.
Official portrait of Federal Reserve Chairman Ben ...
Alan Greenspan, former chairman of the Board of Go...
, member of the Board of Governors, The Federal Re...The Fed operates on its own earnings rather than money appropriated by Congress. The earnings come from interest earned on the Fed's portfolio of securities and money received in payment for services provided to financial institutions.
The main location is in Washington D.C. It is the supreme monetary power in the United States and has sole power to regulate monetary policy. This includes things such as establishing fixed income rates, and determining the supply of money. The Federal Reserve System is comprised of twelve Federal Reserve Banks located throughout the country. Each Bank is given power over commercial and savings banks in its area. These banks must make sure that those banks comply with any and all rules and regulations. The Federal Reserve Board is comprised of seven members. These seven people govern the whole Federal Reserve System as a...