NationMaster - Encyclopedia: Federal Reserve System

The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. Created in 1913 by the enactment of the Federal Reserve Act, it is a quasi-public (government entity with private components) banking system^[1] composed of (1) the presidentially appointed Board of Governors of the Federal Reserve System in Washington, D.C.; (2) the Federal Open Market Committee; (3) 12 regional Federal Reserve Banks located in major cities throughout the nation acting as fiscal agents for the U.S. Treasury, each with its own nine-member board of directors; (4) numerous private U.S. member banks, which subscribe to required amounts of non-transferable stock in their regional Federal Reserve Banks; and (5) various advisory councils. As of 2008, Ben Bernanke serves as the Chairman of the Board of Governors of the Federal Reserve System. Not to be confused with Political economy. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Fiscal policy Spending Deficit Debt Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Banking Regulation Monetary policy is the process by which the government, central bank... In macroeconomics, money supply (monetary aggregates, money stock) is the quantity of currency and money in bank accounts in the hands of the non-bank public available within the economy to purchase goods, services, and securities. ... For other uses, see Gold standard (disambiguation). ... Fiscal policy is the economic term that defines the set of principles and decisions of a government in setting the level of public expenditure and how that expenditure is funded. ... Government spending or government expenditure consists of government purchases, which can be financed by seigniorage (the creation of money for government funding, at a heavy price of high inflation and other possibly devastating consequences), taxes, or government borrowing. ... This article is about budget deficits. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Fiscal policy Spending Deficit Debt Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Banking Regulation Government debt (also known as public debt or national debt) is... This article does not cite any references or sources. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Fiscal policy Spending Deficit Debt Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Banking Regulation For other uses of this word, see tariff (disambiguation). ... A trade pact is a wide ranging tax, tariff and trade pact that usually also includes investment guarantees. ... The field of finance refers to the concepts of time, money and risk and how they are interelated. ... This article does not cite any references or sources. ... There are two basic financial market participant catagories, Investor vs. ... Domestic credit to private sector in 2005 Corporate finance is an area of finance dealing with the financial decisions corporations make and the tools and analysis used to make these decisions. ... -1... Economic policy Monetary policy Central bank Money supply Gold standard Fiscal policy Spending Deficit Debt Policy-mix Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Regulation Banking Fractional-reserve Full-reserve Free banking Islamic Public finance is a field of economics concerned with paying... For other uses, see Bank (disambiguation). ... Fractional-reserve banking refers to a financial system in which some fraction of the deposits can be used to finance profitable but illiquid investments. ... Economic policy Monetary policy Central bank Money supply Gold standard Fiscal policy Spending Deficit Debt Policy-mix Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Regulation Banking Fractional-reserve Full-reserve Free banking Islamic Full-reserve banking is the banking practice in which the... Please wikify (format) this article or section as suggested in the Guide to layout and the Manual of Style. ... Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia) principles and guided by Islamic economics. ... Economic policy Monetary policy Central bank Money supply Gold standard Fiscal policy Spending Deficit Debt Policy-mix Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Regulation Banking Fractional-reserve Full-reserve Free banking Islamic A central bank, reserve bank, or monetary authority is the... The Federal Reserve Act (ch. ... The Fed redirects here. ... A board of governors is usually the governing board of a public entity. ... For other uses, see Washington, D.C. (disambiguation). ... The Federal Open Market Committee (FOMC), a component of the Federal Reserve System, is charged under U.S. law with overseeing open market operations in the United States, and is the principal tool of US national monetary policy. ... For other uses, see Stock (disambiguation). ... Ben Shalom Bernanke[1] is an American economist and current Chairman of the Board of Governors of the United States Federal Reserve. ... The Chairman of the Board of Governors of the United States Federal Reserve is the head of the central bank of the United States and one of the more important decision-makers in American economic policies. ...

History

In 1863, in order to help finance the Civil War, a system of national banks was instituted by the National Currency Act. The banks each had the power to issue standardized national bank notes based on United States bonds held by the bank. The early national banking system had two main weaknesses: an "inelastic" currency; and a lack of liquidity.^[2] During the last quarter of the 19th century and the beginning of the 20th century the United States economy went through a series of financial panics.^[2] A particularly severe panic in 1907 provided the motivation for renewed demands for banking and currency reform.^[3] The following year Congress enacted the Aldrich-Vreeland Act which provided for an emergency currency and established the National Monetary Commission to study banking and currency reform.^[4] Combatants United States of America (Union) Confederate States of America (Confederacy) Commanders Abraham Lincoln, Ulysses S. Grant Jefferson Davis, Robert E. Lee Strength 2,200,000 1,064,000 Casualties 110,000 killed in action, 360,000 total dead, 275,200 wounded 93,000 killed in action, 258,000 total... The National Currency Act was signed into law on 26 February 1863 by president Abraham Lincoln. ... This article does not cite any references or sources. ... The Aldrich-Vreeland Act of 1908 established a National Monetary Commission which recommended the Federal Reserve Act of 1913. ... National Monetary Commission was a study group created by the Aldrich Vreeland Act of 1908. ...

The Federal Reserve Act

The chief of the bipartisan National Monetary Commission was financial expert and Senate Republican leader Nelson Aldrich. Aldrich set up two commissions — one to study the American monetary system in depth and the other, headed by Aldrich himself, to study the European central-banking systems and report on them.^[4] Aldrich went to Europe opposed to centralized banking, but after viewing Germany's banking system came away believing that a centralized bank was better than the government-issued bond system that he had previously supported. Centralized banking was met with much opposition from politicians, who were suspicious of a central bank and who charged that Aldrich was biased due to his close ties to wealthy bankers such as J.P. Morgan and his daughter's marriage to John D. Rockefeller, Jr. The Federal Reserve Act (ch. ... Image File history File links Download high resolution version (1275x1753, 363 KB) Summary 1913 newspaper clipping USA Licensing This image is in the public domain in the United States. ... Image File history File links Download high resolution version (1275x1753, 363 KB) Summary 1913 newspaper clipping USA Licensing This image is in the public domain in the United States. ... Nelson Wilmarth Aldrich (November 6, 1841 - April 16, 1915) was an American politician. ... John Pierpont Morgan (April 17, 1837 – March 31, 1913), American financier and banker, was born in Hartford, Connecticut, a son of Junius Spencer Morgan (1813–1890), who was a partner of George Peabody and the founder of the house of J. S. Morgan & Co. ... John D. Rockefeller Jr. ...

Aldrich fought for a private bank with little government influence, but conceded that the government should be represented on the Board of Directors. Most Republicans favored the Aldrich Plan,^[5] but it lacked enough support in the bipartisan Congress to pass.^[6] Progressive Democrats instead favored a reserve system owned and operated by the government and out of control of the "money trust", ending Wall Street's control of American currency supply.^[5] Conservative Democrats fought for a privately owned, yet decentralized, reserve system, which would still be free of Wall Street's control.^[5] The Federal Reserve Act passed Congress in late 1913 on a mostly partisan basis, with most Democrats in support and most Republicans against it.^[7] GOP redirects here. ...

Post Bretton Woods era

In July 1979, Paul Volcker was nominated, by President Carter, as Chairman of the Federal Reserve Board amid roaring inflation. He tightened the money supply, and by 1986 inflation had fallen sharply.^[8] In October 1979 the Federal Reserve announced a policy of "targeting" money aggregates and bank reserves in its struggle with double-digit inflation.^[9] Paul Adolph Volcker (born September 5, 1927 in Cape May, New Jersey), is best-known as the Chairman of the Federal Reserve (The Fed) under United States Presidents Jimmy Carter and Ronald Reagan (from August 1979 to August 1987). ... For other persons named Jimmy Carter, see Jimmy Carter (disambiguation). ... In macroeconomics, money supply (monetary aggregates, money stock) is the quantity of currency and money in bank accounts in the hands of the non-bank public available within the economy to purchase goods, services, and securities. ...

In January 1987, with retail inflation at only 1%, the Federal Reserve announced it was no longer going to use money-supply aggregates, such as M2, as guidelines for controlling inflation, even though this method had been in use from 1979, apparently with great success. Before 1980, interest rates were used as guidelines; inflation was severe. The Fed complained that the aggregates were confusing. Volcker was chairman until August 1987, whereupon Alan Greenspan assumed the mantle, seven months after monetary aggregate policy had changed.^[10] Squalltoonix (born March 6, 1926 in New York City) is an American economist and was Chairman of the Board of Governors of the Federal Reserve of the United States from 1987 to 2006. ...

Purpose

The purpose of the Federal Reserve System is formally stated in the Federal Reserve Act:^[11] The Federal Reserve Act (ch. ...

The primary motivation for creating the Federal Reserve was to address banking panics. The Federal Reserve briefly describes the circumstances that led to its creation, the purpose for creating it, and functions of the system in The Federal Reserve in Plain English:^[12] A poster for the 1896 Broadway melodrama The War of Wealth depicts a typical 19th century bank panic in the U.S. A modern-day bank run, this one on a British bank A bank run (also known as a run on the bank) is a type of financial crisis. ...

A poster for the 1896 Broadway melodrama The War of Wealth depicts a typical 19th century bank panic in the U.S. A modern-day bank run, this one on a British bank A bank run (also known as a run on the bank) is a type of financial crisis. ... In macroeconomics, money supply (monetary aggregates, money stock) is the quantity of currency and money in bank accounts in the hands of the non-bank public available within the economy to purchase goods, services, and securities. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Fiscal policy Spending Deficit Debt Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Banking Regulation Monetary policy is the process by which the government, central bank...

Addressing the problem of bank panics

Bank runs occur because banking systems are usually fractional reserve lending institutions and do not have enough cash in reserves to give to all of their depositors simultaneously. Bank runs can lead to a multitude of social and economic problems. The Federal Reserve was designed as an attempt to prevent this from occurring. A poster for the 1896 Broadway melodrama The War of Wealth depicts a typical 19th century bank panic in the U.S. A modern-day bank run, this one on a British bank A bank run (also known as a run on the bank) is a type of financial crisis. ... Fractional-reserve banking refers to a financial system in which some fraction of the deposits can be used to finance profitable but illiquid investments. ... Fractional-reserve banking refers to a financial system in which some fraction of the deposits can be used to finance profitable but illiquid investments. ...

Elastic currency

One way to prevent bank runs is to have a money supply that can expand when money is needed. The term "elastic currency" in the Federal Reserve Act doesn't just mean the ability to expand the money supply, but also to contract it. Some economic theories have been developed that support the idea of expanding or shrinking a money supply as economic conditions warrant. Elastic currency is defined by the Federal Reserve as:^[14]

Monetary policy of the Federal Reserve System is based partially on the theory that it is best overall to expand or contract the money supply as economic conditions change.

Check clearing system

Because some banks refused to clear checks from certain other banks during times of economic uncertainty, which increased financial problems, a check-clearing system was created in the Federal Reserve System. It is briefly described in The Federal Reserve System - Purposes and Functions:^[14]

Lender of last resort

The Federal Reserve has the authority and financial resources to act as “lender of last resort” by extending credit to depository institutions or to other entities in unusual circumstances involving a national or regional emergency, where failure to obtain credit would have a severe adverse impact on the economy.^[15] This article needs to be cleaned up to conform to a higher standard of quality. ...

Through its discount and credit operations, Reserve Banks provide liquidity to banks to meet short-term needs stemming from seasonal fluctuations in deposits or unexpected withdrawals. Longer term liquidity may also be provided in exceptional circumstances. The rate the Fed charges banks for these loans is the discount rate (officially the primary credit rate). The discount rate is a financial concept based on the future cash flow in lieu of the present value of the cash flow. ...

In making these loans, the Fed serves as a buffer against unexpected day-to-day fluctuations in reserve demand and supply. This contributes to the effective functioning of the banking system, alleviates pressure in the reserves market and reduces the extent of unexpected movements in the interest rates.^[16]

Central bank

In its role as the central bank of the United States, the Fed serves as a 'banker's bank' and as the government's bank. As the banker's bank, it helps to assure the safety and efficiency of the payments system. As the government's bank, or fiscal agent, the Fed processes a variety of financial transactions involving trillions of dollars. Just as an individual might keep an account at a bank, the U.S. Treasury keeps a checking account with the Federal Reserve through which incoming federal tax deposits and outgoing government payments are handled. As part of this service relationship, the Fed sells and redeems U.S. government securities such as savings bonds and Treasury bills, notes and bonds. It also issues the nation's coin and paper currency. The U.S. Treasury, through its Bureau of the Mint and Bureau of Engraving and Printing, actually produces the nation's cash supply; the Fed Banks then distribute it to financial institutions.^[17] The U.S. Treasury building today. ... Treasury securities are government bonds issued by the United States Department of the Treasury through the Bureau of the Public Debt. ... This article is about monetary coins. ... A £20 Ulster Bank banknote. ... The U.S. Treasury building today. ... Seal of the U.S. Mint Denver United States mint building The United States Mint primarily produces circulating coinage for the United States to conduct its trade and commerce. ... the bomb. ...

Federal funds

Federal funds are the reserve balances that private banks keep at their local Federal Reserve Bank.^[18]^[19] These reserve balances are the "reserves" in "federal reserve", hence the name of the system. The purpose of keeping funds at a Federal Reserve Bank is to have a mechanism through which private banks can lend funds to one another. This market for funds plays an important role in the Federal Reserve System as it is what inspired the name of the system and it is what is used as the basis for monetary policy. Monetary policy works by influencing how much money the private banks charge each other for the lending of these funds. Federal Funds transactions redistribute bank reserves. ...

Balance between private banks and responsibility of government

The system was designed out of a compromise between the competing philosophies of privatization and government regulation.^[17] While planning the design of the system, some people wanted the system to have generally private aspects whereas others wanted more government involvement. The system that resulted ended up being a compromise between these two philosophies. Donald L. Kohn, vice chairman of the Board of Governors, gave a summary of this compromise:^[20]

In the current system, private banks are for-profit businesses but there are restrictions on what they can do. These restrictions placed on private banks are government regulations. The Federal Reserve System is the part of government that regulates the private banks. The balance between privatization and government involvement is also seen in the structure of the system. Private banks elect members of the board of directors at their regional Federal Reserve Bank while the members of the Board of Governors are selected by the President of the United States and confirmed by the Senate. The private banks give input to the government officials about their economic situation and these government officials use this input in Federal Reserve policy decisions. In the end, private banking businesses are able to freely run a profitable business while the U.S. government, through the Federal Reserve System, oversees and regulates the activities of the private banks. Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas US Government Portal For other uses, see President of the United States (disambiguation). ... Type Upper House President of the Senate Richard B. Cheney, R since January 20, 2001 President pro tempore Robert C. Byrd, D since January 4, 2007 Members 100 Political groups Democratic Party Republican Party Last elections November 7, 2006 Meeting place Senate Chamber United States Capitol Washington, DC United States...

Government regulation and supervision

The Board of Governors is the part of the Federal Reserve System that is responsible for supervising the private banks. A general description of the types of regulation and supervision involved is given by the Federal Reserve:^[14]

A bank holding company is a company that owns two or more banks. ... // History The Edge Act is a 1919 Amendment to the Federal Reserve Act of 1913 See United States Code Title 12 - Banks and Banking Chapter 6 - Foreign Banking Subchapter II -- Organization of Corporations to do Foreign Banking, Sections 611-631 which allows National Banks to engage in international banking through... A bank holding company is a company that owns two or more banks. ... The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. ... The FDIC logo The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. ... A state bank is a bank that is owned by a state. ... A state bank is a bank that is owned by a state. ... Consumer protection is a form of government regulation which protects the interests of consumers. ... The Truth in Lending Act (TILA) of 1968 is a United States federal law designed to protect consumers in credit transactions by requiring clear disclosure of key terms of the lending arrangement and all costs. ... The Equal Credit Opportunity Act (ECOA) is a United States law that states that creditors must evaluate candidates based on credit worthiness only, not on factors that have nothing to do with their ability to repay the debt. ... HMDA redirects here. ... A Congressional committee in the parlance of the United States Congress and politics of the United States is a legislative sub-organization that handles a specific duty (rather than the general duties of Congress, i. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Fiscal policy Spending Deficit Debt Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Banking Regulation Monetary policy is the process by which the government, central bank... Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines, aiming to uphold the soundness and integrity of the financial system. ... Consumer protection is a form of government regulation which protects the interests of consumers. ... This article does not cite any references or sources. ... The Council of Economic Advisers (CEA) is a group of economists set up to advise the President of the United States. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas US Government Portal For other uses, see President of the United States (disambiguation). ... The United States Secretary of the Treasury is the finance minister of the Federal Government of the United States. ...

Preventing asset bubbles

The board of directors of each Federal Reserve Bank District also have regulatory and supervisory responsibilities. For example, a member bank (private bank) is not permitted to give out too many loans to people who cannot pay them back. This is because too many defaults on loans will lead to a bank run. If the board of directors has judged that a member bank is performing or behaving poorly, it will report this to the Board of Governors. This policy is described in United States Code, Title 12, Chapter 3, subchapter 7, section 301:^[21]

The punishment for making false statements or reports which overvalue an asset is stated in U.S. Code, Title 18, Part 1, Chapter 47, Section 1014:^[22]

These aspects of the Federal Reserve System are the parts intended to prevent or minimize speculative asset bubbles which ultimately lead to severe market corrections.

Structure

Independent within government

The Federal Reserve System is an independent government institution that has private aspects, but is neither a private organization, nor operates for a profit. It derives its authority and public purpose from the Federal Reserve Act passed by Congress in 1913. As an independent institution, the Federal Reserve has the authority to act on its own without prior approval from Congress or the President.^[23] The members of its Board of Governors are appointed for long, staggered terms, limiting the influence of day-to-day political considerations.^[24] The Federal Reserve’s unique structure also provides internal checks and balances, ensuring that its decisions and operations are not dominated by any one part of the system. It also generates revenue independently without need for Congressional funding. Congressional oversight and statute, which can alter the Fed's responsibilities and control, allows the government to keep the Federal Reserve in check. Since it was designed to be independent whilst also remaining within the government of the United States, it is often said to be "independent within the government."^[23] This is an incomplete list of federal agencies, which are either departmental agencies within the executive branch of the United States government or are Independent Agencies of the United States Government (including regulatory agencies and government corporations). ... Independent agencies of the United States government are those that exist outside of the departments of the executive branch. ... The Federal Reserve Act (ch. ...

The 12 Federal Reserve banks provide the financial means to operate the Federal Reserve. Each reserve bank is organized much like a private corporation so that it can provide the necessary revenue to cover operational expenses and implement the demands of the board. Member banks are privately owned banks that must buy a certain amount of stock in the Reserve Bank within its region to be a member of the Federal Reserve System. This stock "may not be sold, traded, or pledged as security for a loan" and all member banks receive a 6% annual dividend.^[23] These member banks must maintain fractional reserves either as vault cash or on account at its Reserve Bank; member banks earn no interest on either of these. The dividends paid by the Federal Reserve Banks to member banks are considered partial compensation for the lack of interest paid on the required reserves. All profit after expenses is returned to the U.S. Treasury or contributed to the surplus capital of the Federal Reserve Banks (and since shares in ownership of the Federal Reserve Banks are redeemable only at par, the nominal "owners" do not benefit from this surplus capital); the Federal Reserve system contributed over $29 billion to the Treasury in 2006.^[25] Fractional-reserve banking refers to a financial system in which some fraction of the deposits can be used to finance profitable but illiquid investments. ...

Outline

Board of Governors

The seven-member Board of Governors is the main governing body of the Federal Reserve System. It is charged with overseeing the 12 District Reserve Banks and with helping implement national monetary policy. Governors are appointed by the President of the United States and confirmed by the Senate.^[26], one on Jan. 31 of every even-numbered year, for staggered, 14-year terms.^[16] As an independent federal government agency,^[27] the Board of Governors does not receive funding from Congress, and the terms of the seven members of the Board span multiple presidential and congressional terms. Once a member of the Board of Governors is appointed by the president, he or she functions mostly independently. The Board is required to make an annual report of operations to the Speaker of the U.S. House of Representatives.^[28] It also supervises and regulates the operations of the Federal Reserve Banks, and US banking system in general. Image File history File links US-FederalReserveBoard-Seal. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas US Government Portal For other uses, see President of the United States (disambiguation). ... Type Upper House President of the Senate Richard B. Cheney, R since January 20, 2001 President pro tempore Robert C. Byrd, D since January 4, 2007 Members 100 Political groups Democratic Party Republican Party Last elections November 7, 2006 Meeting place Senate Chamber United States Capitol Washington, DC United States... Independent agencies of the United States government are those that exist outside of the departments of the executive branch. ...

Membership is generally limited to one term. However, if someone is appointed to serve the remainder of another member's uncompleted term, he or she may be reappointed to serve an additional 14-year term.^[29] Conversely, a governor may serve the remainder of another governor's term even after he or she has completed a full term. The law provides for the removal of a member of the Board by the President "for cause."^[29]

(*Because the Senate Banking Committee has refused to hold hearings on appointments to fill the two vacant positions until a new President takes office, there are currently two vacancies. Governor Kroszner's term has also expired, but the law allows him to remain in office until a successor is confirmed) Ben Shalom Bernanke[1] is an American economist and current Chairman of the Board of Governors of the United States Federal Reserve. ... Don Kohn Donald L. Kohn (born November 7, 1942) is a member of the Board of Governors of the Federal Reserve System. ... Frederic S. Mishkin (January 11, 1951) is an economist and currently the Alfred Lerner Professor of Banking and Financial Institutions at the Graduate School of Business, Columbia University. ... Kevin Warsh Kevin M. Warsh (born April 13, 1970) is a member of the Board of Governors of the Federal Reserve System. ... This article or section does not cite its references or sources. ...

All current members of the Board of Governors have taken office during the presidency of George W. Bush. George Walker Bush (born July 6, 1946) is the forty-third and current President of the United States of America, originally inaugurated on January 20, 2001. ...

Federal open market committee

The Federal Open Market Committee (FOMC) created under 12 U.S.C. § 263 comprises the seven members of the board of governors and five representatives selected from the regional Federal Reserve Banks. The FOMC is charged under law with overseeing open market operations, the principal tool of national monetary policy. These operations affect the amount of Federal Reserve balances available to depository institutions, thereby influencing overall monetary and credit conditions. The FOMC also directs operations undertaken by the Federal Reserve in foreign exchange markets. The representative from the Second District, New York, (currently Timothy Geithner) is a permanent member, while the rest of the banks rotate at two- and three-year intervals. All the presidents participate in FOMC discussions, contributing to the committee’s assessment of the economy and of policy options, but only the five presidents who are committee members vote on policy decisions. The FOMC, under law, determines its own internal organization and by tradition elects the Chairman of the Board of Governors as its chairman and the president of the Federal Reserve Bank of New York as its vice chairman. Formal meetings typically are held eight times each year in Washington, D.C. Nonvoting Reserve Bank presidents also participate in Committee deliberations and discussion. The FOMC generally meets eight times a year in Telephone consultations and other meetings are held when needed.^[14] The Federal Open Market Committee (FOMC), a component of the Federal Reserve System, is charged under U.S. law with overseeing open market operations in the United States, and is the principal tool of US national monetary policy. ... Title 12 of the United States Code outlines the role of Banks and Banking in the United States Code. ... This article is about the state. ... Timothy F. Geithner, President of the New York Fed Timothy F. Geithner is the 9th president of the Federal Reserve Bank of New York. ...

Federal Reserve Banks

There are 12 regional Federal Reserve Banks (not to be confused with the "member banks") with 25 branches, which serve as the operating arms of the system. Each Federal Reserve Bank is subject to oversight by a Board of Governors.^[30] Each Federal Reserve Bank has a board of directors, whose members work closely with their Reserve Bank president to provide grassroots economic information and input on management and monetary policy decisions. These boards are drawn from the general public and the banking community and oversee the activities of the organization. They also appoint the presidents of the Reserve Banks, subject to the approval of the Board of Governors. Reserve Bank boards consist of nine members: six serving as representatives of nonbanking enterprises and the public (nonbankers) and three as representatives of banking. Each Federal Reserve branch office has its own board of directors, composed of three to seven members, that provides vital information concerning the regional economy.^[16] Image File history File links Federal_Reserve_Districts_Map. ... Image File history File links Federal_Reserve_Districts_Map. ...

The Reserve Banks opened for business on November 16, 1914. Federal Reserve Notes were created as part of the legislation, to provide a supply of currency. The notes were to be issued to the Reserve Banks for subsequent transmittal to banking institutions. The various components of the Federal Reserve System have differing legal statuses. is the 320th day of the year (321st in leap years) in the Gregorian calendar. ... Year 1914 (MCMXIV) was a common year starting on Thursday (link will display the full calendar) of the Gregorian calendar (or a common year starting on Wednesday of the 13-day-slower Julian calendar). ... FRN redirects here. ...

The Federal Reserve Banks have an intermediate status, with some features of private corporations and some features of public federal agencies. Each member bank owns nonnegotiable shares of stock in its regional Federal Reserve Bank—but these shares of stock give the member banks only limited control over the actions of the Federal Reserve Banks, and the charter of each Federal Reserve Bank is established by law and cannot be altered by the member banks. While it is unusual, private individuals and non-bank corporations (with proof of a resolution of the board of directors indicating it intends to do so) may also purchase one or more shares of stock of any of the Federal Reserve Banks.^{[citation needed]} The stock is the same nonnegotiable stock as banks receive, cannot be sold and pays a small dividend. In Lewis v. United States,^[31] the United States Court of Appeals for the Ninth Circuit stated that "the Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act], but are independent, privately owned and locally controlled corporations." The opinion also stated that "the Reserve Banks have properly been held to be federal instrumentalities for some purposes." Another decision is Scott v. Federal Reserve Bank of Kansas City^[32] in which the distinction between the Federal Reserve Banks and the Board of Governors is made. The U.S. Court of Appeals for the Ninth Circuit is a federal court with appellate jurisdiction over the district courts in the following districts: District of Alaska District of Arizona Central District of California Eastern District of California Northern District of California Southern District of California District of Hawaii... The Federal Tort Claims Act, 28 U.S.C. 2680(h) (FTCA), is a statute enacted by the United States Congress in 1946 which permits private parties to sue the United States in a federal court for most torts committed by persons acting on behalf of the U.S. Liability...

Board of directors

The nine member board of directors of each district is made up of 3 classes, designated as classes A, B, and C. The directors serve a term of 3 years. The makeup of the boards of directors is outlined in U.S. Code, Title 12, Chapter 3, Subchapter 7:^[33]

List of Federal Reserve Banks

The Federal Reserve Districts are listed below along with their identifying letter and number. These are used on Federal Reserve Notes to identify the issuing bank for each note. The 25 branches are also listed.

The Federal Reserve Bank of Boston The Federal Reserve Bank of Boston is responsible for the First District of the Federal Reserve, which covers Connecticut (excluding Fairfield County), Massachusetts, Maine, New Hampshire, Rhode Island and Vermont. ... Eric S. Rosengren took office on July 23, 2007, as the thirteenth president and chief executive officer of the Federal Reserve Bank of Boston, serving the First District. ... The Federal Reserve Bank of New York is the most important of the twelve Federal Reserve Banks of the United States. ... Timothy F. Geithner, President of the New York Fed Timothy F. Geithner is the 9th president of the Federal Reserve Bank of New York. ... The Federal Reserve Bank of Philadelphia, headquartered in Philadelphia, Pennsylvania, is responsible for the Third District of the Federal Reserve, which covers eastern Pennsylvania, southern New Jersey, and Delaware. ... This article is considered orphaned, since there are very few or no other articles that link to this one. ... The Federal Reserve Bank of Cleveland. ... Sandra Pianalto took office on February 1, 2003, as the tenth chief executive of the Fourth District Federal Reserve Bank, at Cleveland. ... The Federal Reserve Bank of Richmond is the headquarters of the Fifth District of the Federal Reserve. ... Jeffrey M. Lacker is a member of the Fed, whose vote was the solitary dissent in the Fed meetings of August and September 2006 which decided to keep interest rates steady at 5. ... The Federal Reserve Bank of Atlanta is responsible for the 6th District of the Federal Reserve, which covers Alabama, Florida, Georgia, and parts of Louisiana, Mississippi, and Tennessee. ... Dennis P. Lockhart (born February 1, 1947) is President and CEO of the Federal Reserve Bank of Atlanta. ... Federal Reserve Bank of Chicago, located at the corner of LaSalle and Jackson streets. ... The Federal Reserve Bank of St. ... Federal Reserve Bank of Minneapolis The Federal Reserve Bank of Minneapolis covers the 9th District of the Federal Reserve, including Minnesota, Montana, North and South Dakota, northwestern Wisconsin, and the Upper Peninsula of Michigan. ... Gary H. Stern took office on March 16, 1985, as the eleventh chief executive of the Ninth Federal Reserve Bank, at Minneapolis. ... Front of the Federal Reserve Bank of Kansas City The Federal Reserve Bank of Kansas City covers the 10th District of the Federal Reserve, which includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, and portions of western Missouri and northern New Mexico. ... Thomas M. Hoenig took office on October 1, 1991, as the eighth chief executive of the Tenth District Federal Reserve Bank, at Kansas City. ... The Federal Reserve Bank of Dallas covers the Eleventh Federal Reserve District, which includes Texas, northern Louisiana and southern New Mexico. ... Richard W. Fisher Richard W. Fisher, born 1949,[1] is currently the President of the Federal Reserve Bank of Dallas, having assumed that post in April, 2005. ... The facade of the Federal Reserve Bank of San Francisco. ... Janet Yellen Janet Yellen is an economist and president of the Federal Reserve Bank of San Francisco. ...

Member banks

Each member bank is a private bank (e.g., a privately owned corporation) that holds stock in one of the twelve regional Federal Reserve banks. All of the commercial banks in the United States can be divided into three types according to which governmental body charters them and whether or not they are members of the Federal Reserve System:^[14]

All nationally chartered banks hold stock in one of the Federal Reserve banks. State-chartered banks may choose to be members (and hold stock in a regional Federal Reserve bank), upon meeting certain standards.

Holding stock in a Federal Reserve bank is not, however, like owning publicly traded stock. The stock cannot be sold or traded. Member banks receive a fixed, 6 percent dividend annually on their stock, and they do not directly control the applicable Federal Reserve bank as a result of owning this stock. They do, however, elect six of the nine members of Reserve banks’ boards of directors.^[16] Federal statute provides (in part):

Other banks may elect to become member banks. According to the Federal Reserve Bank of Boston:

For example, as of October 2006 the member banks in New Hampshire included Community Guaranty Savings Bank; The Lancaster National Bank; The Pemigewasset National Bank of Plymouth; and other banks.^[37] In California, member banks (as of September 2006) included Bank of America California, National Association; The Bank of New York Trust Company, National Association; Barclays Global Investors, National Association; and many other banks.^[38]

List of member banks

A list of all U.S. commercial banks can be found at the website of the Federal Deposit Insurance Corporation (FDIC).^[39] Every member bank of the Federal Reserve System is listed here along with every other U.S. commercial bank that is not a member of the system. This is a comprehensive list with many categories describing various characteristics of each bank such as the total assets, bank holding company, charter type, location of headquarters, federal reserve district, and many more. From this list, one can see that most commercial banks in the United States are not members of the Federal Reserve System, but the total value of all the banking assets of member banks is substantially larger than the total value of the banking assets of nonmembers. The FDIC logo The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation created by the Glass-Steagall Act of 1933. ...

All U.S. commercial banks by bank charter type (assets in thousands of dollars, data given by FDIC website as of June 15, 2008):^[39]

The N and SM are members of the system whereas the rest are not. While the OI, SA, and SB categories are not members of the system, they are sometimes treated as if they were members under certain circumstances.^[40]

Advisory Committees

The Federal Reserve System uses advisory committees in carrying out its varied responsibilities. Three of these committees advise the Board of Governors directly:^[14]

The Federal Reserve Banks also use advisory committees. Of these advisory committees, perhaps the most important are the committees (one for each Reserve Bank) that advise the Banks on matters of agriculture, small business, and labor. Biannually, the Board solicits the views of each of these committees by mail.

Monetary policy

The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. What happens to money and credit affects interest rates (the cost of credit) and the performance of the U.S. economy. The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy.^[41]^[42] // When money is deposited in a bank it can then be lent out to another person. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Fiscal policy Spending Deficit Debt Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Banking Regulation Monetary policy is the process by which the government, central bank...

Interbank lending is the basis of policy

The Federal Reserve implements monetary policy by influencing the interbank lending of excess reserves. Interbank lending occurs when too many withdrawals have been made at a bank and it needs to borrow funds from another bank to make up the difference. The rate that banks charge each other for these loans is determined by the markets but the Federal Reserve influences this rate through the three tools of monetary policy which are described in the "Tools of monetary policy" section below. A summary of the basis and implementation of monetary policy is stated by the Federal Reserve:

This influences the economy through its effect on the quantity of reserves that banks use to make loans. Policy actions that add reserves to the banking system encourage lending at lower interest rates thus stimulating growth in money, credit, and the economy. Policy actions that absorb reserves work in the opposite direction. The Fed's task is to supply enough reserves to support an adequate amount of money and credit, avoiding the excesses that result in inflation and the shortages that stifle economic growth.^[43]

Goals of monetary policy

Tools of monetary policy

There are three main tools of monetary policy that the Federal Reserve uses to influence the amount of reserves in private banks:^[41]

Open Market Operations are the means by which central banks control the liquidity of the national currency. ... The federal funds rate is the interest rate at which private depository institutions lend balances (federal funds) at the Federal Reserve to other depository institutions overnight. ... The discount window is an instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions. ... Reserve requirements, a tool of monetary policy, are computed as percentages of deposits that banks must hold as vault cash or on deposit at the central bank (in the United States in a Federal Reserve Bank), rather than, perhaps, lend out. ...

Open market operations

Open market operations put money in and take money out of the banking system. This is done through the sale and purchase of U.S. government treasury securities. When the U.S. government sells securities, it gets money from the banks and the banks get a piece of paper (I.O.U.) that says the U.S. government owes the bank money. This drains money from the banks. When the U.S. government buys securities, it gives money to the banks and the banks give the I.O.U. back to the U.S. government. This puts money back into the banks. The Federal Reserve education website describes open market operations as follows:^[42] Open Market Operations are the means by which central banks control the liquidity of the national currency. ... Money creation is the process by which money is produced or issued. ...

A simpler description is described in The Federal Reserve in Plain English:^[12]

Repurchase agreements

To smooth temporary or cyclical changes in the monetary supply, the desk engages in repurchase agreements (repos) with its primary dealers. Repos are essentially secured, short-term lending by the Fed. On the day of the transaction, the Fed deposits money in a primary dealer’s reserve account, and receives the promised securities as collateral. When the transaction matures, the process unwinds: the Fed returns the collateral and charges the primary dealer’s reserve account for the principal and accrued interest. The term of the repo (the time between settlement and maturity) can vary from 1 day (called an overnight repo) to 65 days.^[47] Repurchase agreements (RPs or Repos) are financial instruments used in the money markets and capital markets. ... Repurchase agreements (RPs or Repos) are financial instruments used in the money markets and capital markets. ... Primary dealers are banks or brokerage firms who may trade directly with the Federal Reserve System. ... This article is about assets that secure a debt obligation. ...

Federal funds rate and discount rate

The Federal Reserve System implements monetary policy largely by targeting the federal funds rate. This is the rate that banks charge each other for overnight loans of federal funds, which are the reserves held by banks at the Fed. This rate is actually determined by the market and is not explicitly mandated by the Fed. The Fed therefore tries to align the effective federal funds rate with the targeted rate by adding or subtracting from the money supply through open market operations. The late economist Milton Friedman consistently criticized this reverse method of controlling inflation by seeking an ideal interest rate and enforcing it through affecting the money supply since nowhere in the widely accepted money supply equation are interest rates found.^[48] The federal funds rate is the interest rate at which private depository institutions lend balances (federal funds) at the Federal Reserve to other depository institutions overnight. ... The discount window is an instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Fiscal policy Spending Deficit Debt Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Banking Regulation Monetary policy is the process by which the government, central bank... The federal funds rate is the interest rate at which private depository institutions lend balances (federal funds) at the Federal Reserve to other depository institutions overnight. ... Federal Funds transactions redistribute bank reserves. ... Milton Friedman (July 31, 1912 â€“ November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... In macroeconomics, money supply (monetary aggregates, money stock) is the quantity of currency and money in bank accounts in the hands of the non-bank public available within the economy to purchase goods, services, and securities. ...

The Federal Reserve System also directly sets the "discount rate", which is the interest rate that banks pay the Fed to borrow directly from it. This rate is generally set at a rate close to 100 points above the target federal funds rate. The idea is to encourage banks to seek alternative funding before using the "discount rate" option.^[49] A basis point (often denoted as bp, bps or ; rarely, permyriad) is a unit that is equal to 1/100th of 1%. It is commonly used to denote the change in a financial instrument, or the difference (spread) between two interest rates; although it may be used in any case...

Both of these rates influence the prime rate which is usually about 3 percentage points higher than the federal funds rate. Prime rate is a term applied in many countries to a reference interest rate used by banks. ...

Lower interest rates stimulate economic activity by lowering the cost of borrowing, making it easier for consumers and businesses to buy and build, but at the cost of promoting the expansion of the money supply and thus greater inflation. Higher interest rates slow the economy by increasing the cost of borrowing. (See monetary policy for a fuller explanation.) Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Fiscal policy Spending Deficit Debt Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Banking Regulation Monetary policy is the process by which the government, central bank...

The Federal Reserve System usually adjusts the federal funds rate by 0.25% or 0.50% at a time.

The Federal Reserve System might also attempt to use open market operations to change long-term interest rates, but its "buying power" on the market is significantly smaller than that of private institutions. The Fed can also attempt to "jawbone" the markets into moving towards the Fed's desired rates, but this is not always effective.^{[citation needed]} Open Market Operations are the means by which central banks control the liquidity of the national currency. ...

Reserve requirements

Another instrument of monetary policy adjustment employed by the Federal Reserve System is the fractional reserve requirement, also known as the required reserve ratio.^[50] The required reserve ratio sets the balance that the Federal Reserve System requires a depository institution to hold in the Federal Reserve Banks,^[51] which depository institutions trade in the federal funds market discussed above.^[52] The required reserve ratio is set by the Board of Governors of the Federal Reserve System.^[53] The reserve requirement (or required reserve ratio) is a bank regulation that sets the minimum reserves each bank must hold to customer deposits and notes. ...

New facilities

In order to address problems related to the subprime mortgage crisis and United States housing bubble, three new tools have been created. The first new tool, called the Term Auction Facility, was added on December 12, 2007. It was first announced as a temporary tool^[56] but there have been suggestions that this new tool may remain in place for a prolonged period of time.^[57] Creation of the second new tool, called the Term Securities Lending Facility, was announced on March 11, 2008.^[58] The main difference between these two facilities is that the Term Auction Facility is used to inject cash into the banking system whereas the Term Securities Lending Facility is used to inject treasury securities into the banking system.^[59] Creation of the third tool, called the Primary Dealer Credit Facility (PDCF), was announced on March 16, 2008.^[60] The PDCF was a fundamental change in Federal Reserve policy because now the Fed is able to lend directly to primary dealer's, which was previously against Fed policy.^[61] The differences between these 3 new facilities is described by the Federal Reserve:^[62] The Bear Stearns Companies, Inc. ... A hedge fund is a private, largely unregulated pool of capital whose managers can buy or sell any assets, bet on falling as well as rising assets, and participate substantially in profits from money invested. ... The term perp walk refers to the controversial practice in the United States of the police parading a suspect who has been arrested through a public place where the media (in particular, television cameras) may observe and record the event. ... F.B.I. and FBI redirect here. ... Home $weet Home: cover of the June 13, 2005 issue of Time magazine[1] illustrating the mania[2] for home buying. ... Subprime lending, also called B-Paper, near-prime, or second chance lending, is a general term that refers to the practice of making loans to borrowers who do not qualify for market interest rates because of problems with their credit history. ... J.P. Morgan Chase & Co. ... Federal Reserve Districts The United States Federal Reserve System consists of twelve Federal Reserve Banks, each responsible for a particular district, and some with branches. ... The Fed redirects here. ... The Fed redirects here. ... The subprime mortgage crisis is an ongoing problem manifesting itself through liquidity issues in the banking system which have become more prevalent due to foreclosures which accelerated in the United States in late 2006 and triggered a global financial crisis during 2007 and 2008. ... Home $weet Home: cover of the June 13, 2005 issue of Time magazine[1] illustrating the mania[2] for home buying. ... is the 346th day of the year (347th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) was a common year starting on Monday of the Gregorian calendar in the 21st century. ... is the 70th day of the year (71st in leap years) in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Common Era (or Anno Domini), in accordance with the Gregorian calendar. ... Treasury securities are government bonds issued by the United States Department of the Treasury through the Bureau of the Public Debt. ...

Some of the measures taken by the Federal Reserve to address this mortgage crisis haven't been used since The Great Depression^[63]. The Federal Reserve gives a brief summary of what these new facilities are all about:^[64] The Great Depression was a global economic slump that began in 1929 and bottomed in 1933. ...

Term auction facility

The Term Auction Facility is a program in which the Federal Reserve auctions term funds to depository institutions.^[56] The creation of this facility was announced by the Federal Reserve on December 12, 2007 and was done in conjunction with the Bank of Canada, the Bank of England, the European Central Bank, and the Swiss National Bank to address elevated pressures in short-term funding markets.^[65] The reason it was created is because banks were not lending funds to one another and banks in need of funds were refusing to go to the discount window. Banks were not lending money to each other because there was a fear that the loans would not be paid back. Banks refused to go to the discount window because it is usually associated with the stigma of bank failure.^[66]^[67]^[68]^[69] Under the Term Auction Facility, the identity of the banks in need of funds is protected in order to avoid the stigma of bank failure.^[70] Foreign exchange swap lines with the European Central Bank and Swiss National Bank were opened so the banks in europe could have access to U.S. dollars. ^[70] Federal Reserve Chairman Ben Bernanke briefly described this facility to the U.S. House of Representatives on January 17, 2008: For the defunct commercial bank, see Bank of Canada (commercial). ... Headquarters Coordinates , , Governor Mervyn King Central Bank of United Kingdom Currency Pound sterling ISO 4217 Code GBP Base borrowing rate 5. ... Headquarters Coordinates , , Established 1 January 1998 President Jean-Claude Trichet Central Bank of Austria, Belgium, France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovenia, Spain Currency Euro ISO 4217 Code EUR Reserves â‚¬43bn directly, â‚¬338bn through the Eurosystem (including gold deposits). ... The Swiss National Bank is a central bank and responsible for the monetary policy of Switzerland. ... Headquarters Coordinates , , Established 1 January 1998 President Jean-Claude Trichet Central Bank of Austria, Belgium, France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovenia, Spain Currency Euro ISO 4217 Code EUR Reserves â‚¬43bn directly, â‚¬338bn through the Eurosystem (including gold deposits). ... The Swiss National Bank is a central bank and responsible for the monetary policy of Switzerland. ... The United States dollar is the official currency of the United States. ...

Term securities lending facility

The Term Securities Lending Facility is a 28-day facility that will offer Treasury general collateral to the Federal Reserve Bank of New York’s primary dealers in exchange for other program-eligible collateral. It is intended to promote liquidity in the financing markets for Treasury and other collateral and thus to foster the functioning of financial markets more generally.^[72] Like the Term Auction Facility, the TSLF was done in conjunction with the Bank of Canada, the Bank of England, the European Central Bank, and the Swiss National Bank. The resource allows dealers to switch debt that is less liquid for U.S. government securities that are easily tradable. It is anticipated by Federal Reserve officials that the primary dealers, which include Goldman Sachs Group. Inc., Bear Stearns Cos. and Merrill Lynch & Co., will lend the Treasuries on to other firms in return for cash. That will help the dealers finance their balance sheets.^[73] The currency swap lines with the European Central Bank and Swiss National Bank were increased. For the defunct commercial bank, see Bank of Canada (commercial). ... Headquarters Coordinates , , Governor Mervyn King Central Bank of United Kingdom Currency Pound sterling ISO 4217 Code GBP Base borrowing rate 5. ... Headquarters Coordinates , , Established 1 January 1998 President Jean-Claude Trichet Central Bank of Austria, Belgium, France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovenia, Spain Currency Euro ISO 4217 Code EUR Reserves â‚¬43bn directly, â‚¬338bn through the Eurosystem (including gold deposits). ... The Swiss National Bank is a central bank and responsible for the monetary policy of Switzerland. ... Headquarters Coordinates , , Established 1 January 1998 President Jean-Claude Trichet Central Bank of Austria, Belgium, France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovenia, Spain Currency Euro ISO 4217 Code EUR Reserves â‚¬43bn directly, â‚¬338bn through the Eurosystem (including gold deposits). ... The Swiss National Bank is a central bank and responsible for the monetary policy of Switzerland. ...

Primary dealer credit facility

The Primary Dealer Credit Facility (PDCF) is an overnight loan facility that will provide funding to primary dealers in exchange for a specified range of eligible collateral and is intended to foster the functioning of financial markets more generally.^[62] This new facility marks a fundamental change in Federal Reserve policy because now primary dealers can borrow directly from the Fed when this previously was not permitted.

Uncertainties

A few of the uncertainties involved in monetary policy decision making are described by the federal reserve:^[14]

Measurement of economic variables

The money supply

The most common measures are named M0 (narrowest), M1, M2, and M3. In the United States they are defined by the Federal Reserve as follows: In macroeconomics, money supply (monetary aggregates, money stock) is the quantity of currency and money in bank accounts in the hands of the non-bank public available within the economy to purchase goods, services, and securities. ...

The Federal Reserve ceased publishing M3 statistics in March 2006, explaining that it cost a lot to collect the data but did not provide significantly useful information.^[74] The other three money supply measures continue to be provided in detail. It has been suggested that this article or section be merged with Current account (banking). ... The passbook is the traditional document to keep track of earnings in a savings account Savings accounts are accounts maintained by commercial banks, savings and loan associations, credit unions, and mutual savings banks that pay interest but can not be used directly as money (by, for example, writing a cheque). ... The money market is a general term for the markets in which banks lend to and borrow from each other, trade financial instruments such as Certificates of Deposit (CDs) or enter agreements such as Repos and Reverses. ... A certificate of deposit or CD is, in the United States, a time deposit, a familiar financial product, commonly offered to consumers by banks, thrift institutions, and credit unions. ... Eurodollars are deposits denominated in United States dollar at banks outside the United States, and thus are not under the jurisdiction of the Federal Reserve. ... Repurchase agreements (RPs or Repos) are financial instruments used in the money markets and capital markets. ...

Consumer price index

The consumer price index is used to measure the value of the money. It is defined as: It has been suggested that this article be split into multiple articles accessible from a disambiguation page. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links This is a lossless scalable vector image. ... It has been suggested that this article be split into multiple articles accessible from a disambiguation page. ...

The data consists of the US city average of consumer prices and can be found at The US Department of Labor - Bureau of Labor Statistics^[76]

The CPI has powerful political ramifications, and Administrations of both parties have been tempted to change the basis for its calculation, progressively underestimating the true rate of decline in purchasing power. ^[77]

One of the Fed's main roles is to maintain price stability. This means that the change in the consumer price index over time should be as small as possible. The ability to maintain a low inflation rate is a long-term measure of the Fed's success.^[12] Although the Fed usually tries to keep the year-on-year change in CPI between 2 and 3 percent,^[78] there has been debate among policy makers as to whether or not the Federal Reserve should have a specific inflation targeting policy.^[79]^[80]^[81] See forecasting and unexpected and expected inflation. ...

Inflation and the economy

Inflation is a sustained increase in the general level of prices, which is equivalent to a decline in the value or purchasing power of money. If the supply of money and credit increases too rapidly over many months, the result will be inflation. With inflation, a dollar buys less and less over time.^[42]

Unemployment rate

The unemployment rate statistics are collected by the Bureau of Labor Statistics. Since one of the stated goals of monetary policy is maximum employment, the unemployment rate is a sign of the success of the Federal Reserve System. Unemployment rates in the United States. ... Below is a comparison of the unemployment rates by state, ranked from highest to lowest. ... Image File history File links Download high-resolution version (838x549, 48 KB) [edit] Summary Unemployment rates in the United States (1950 - 2005). ... Image File history File links Download high-resolution version (838x549, 48 KB) [edit] Summary Unemployment rates in the United States (1950 - 2005). ... The Bureau of Labor Statistics was founded in 1884 by President Chester A. Arthur. ...

Like the CPI, the unemployment rate is used as a barometer of the nation's economic health, and thus as a measure of the success of an administration's economic policies. Since 1980, both parties have made progressive changes in the basis for calculating unemployment, so that the numbers now quoted cannot be compared directly to the corresponding rates from earlier administrations, or to the rest of the world. ^[82]

Budget

The Federal Reserve is self-funded. The vast majority (90%+) of Fed revenues come from open market operations, specifically the interest on the portfolio of Treasury securities as well as “capital gains/losses” that may arise from the buying/selling of the securities and their derivatives as part of Open Market Operations. The balance of revenues come from sales of financial services (check and electronic payment processing) and discount window loans.^[83] Seigniorage, also spelled seignorage, is the net revenue derived from the issuing of currency. ...

Balance sheet

One of the keys to understanding the Federal Reserve is the Federal Reserve balance sheet (or balance statement). In accordance with Section 11 of the Federal Reserve Act, the Board of Governors of the Federal Reserve System publishes once each week the "Consolidated Statement of Condition of All Federal Reserve Banks" showing the condition of each Federal Reserve bank and a consolidated statement for all Federal Reserve banks.^[84] In financial accounting, a balance sheet or statement of financial position is a summary of a persons or organizations assets, liabilities and ownership equity on a specific date, such as the end of its financial year. ... The Federal Reserve Act (ch. ... A board of governors is usually the governing board of a public entity. ...

Below is the balance sheet as of May 15, 2008 (in millions of dollars): In financial accounting, a balance sheet or statement of financial position is a summary of a persons or organizations assets, liabilities and ownership equity on a specific date, such as the end of its financial year. ... is the 135th day of the year (136th in leap years) in the Gregorian calendar. ... 2008 (MMVIII) is the current year, a leap year that started on Tuesday of the Common Era (or Anno Domini), in accordance with the Gregorian calendar. ...

In addition, the balance sheet also indicates which assets are held as collateral against Federal Reserve Notes. GOLD refers to one of the following: GOLD (IEEE) is an IEEE program designed to garner more student members at the university level (Graduates of the Last Decade). ... For other uses, see Gold standard (disambiguation). ... 1880 United States Notes A United States Note is a fiat paper currency that was issued directly into circulation by the United States Department of the Treasury. ... Various Federal Reserve Notes Federal Reserve note is the official name for the kind of banknote used in the United States, more commonly known as dollar bills. ... GOLD refers to one of the following: GOLD (IEEE) is an IEEE program designed to garner more student members at the university level (Graduates of the Last Decade). ... In the most general sense, a liability is anything that is a hindrance, or puts individuals at a disadvantage. ... This article is about the business definition. ... The United States Department of the Treasury is a Cabinet department, a treasury, of the United States government established by an Act of U.S. Congress in 1789 to manage the revenue of the United States government. ... This article is about monetary coins. ... 1880 United States Notes A United States Note is a fiat paper currency that was issued directly into circulation by the United States Department of the Treasury. ... The term treasury was first used in classical times to describe the votive buildings erected to house gifts to the gods, such as the Siphnian Treasury in Delphi or the many buildings put up in Olympia, Greece by competing city-states, to impress each other during the Ancient Olympic Games. ... In the most general sense, a liability is anything that is a hindrance, or puts individuals at a disadvantage. ... US Debt from 1940 on. ... Repurchase agreements (RPs or Repos) are financial instruments used in the money markets and capital markets. ... Repurchase agreements (RP or Repo), are financial instruments used in the money markets. ... Open Market Operations are the means by which central banks control the liquidity of the national currency. ... For other uses, see Bank (disambiguation). ... Primary dealers are banks or brokerage firms who may trade directly with the Federal Reserve System. ... Open Market Operations are the means by which central banks control the liquidity of the national currency. ... Treasury Tax and Loan Serviceis a service in the US that keeps tax receipts in the banking sector by depositing them into select banks that meet certain criteria. ... Various Federal Reserve Notes Federal Reserve note is the official name for the kind of banknote used in the United States, more commonly known as dollar bills. ...

Criticisms

A large and varied group of criticisms has been directed against the Federal Reserve System. One critique, typified by the Austrian School, is that the Federal Reserve is an unnecessary and counterproductive interference in the economy.^[85] Other critiques include arguments in favor of the gold standard (usually coupled with the charge that the Federal Reserve System is unconstitutional)^[86] or beliefs that the centralized banking system is doomed to fail (due to the fractional reserve system's strong resemblance of the unsustainable pyramid scheme scam).^[85] Some critics argue that the Fed lacks accountability and transparency or that there is a culture of secrecy within the Reserve.^[87] Image File history File links Download high resolution version (2218x2923, 831 KB) Description Alan Greenspan. ... Image File history File links Download high resolution version (2218x2923, 831 KB) Description Alan Greenspan. ... This article is about the political institution. ... Squalltoonix (born March 6, 1926 in New York City) is an American economist and was Chairman of the Board of Governors of the Federal Reserve of the United States from 1987 to 2006. ... The Austrian School, also known as the â€œVienna Schoolâ€ or the â€œPsychological Schoolâ€, is a heterodox school of economic thought that advocates adherence to strict methodological individualism. ... For other uses, see Gold standard (disambiguation). ... The unsustainable geometric progression of a classic pyramid scheme A pyramid scheme is a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, usually without any product or service being delivered. ...

Historical criticisms

Criticisms of the Federal Reserve System are not new, and some historical criticisms are reflective of current concerns.

At one end of the spectrum are economists from the Austrian School and the Chicago School who want the Federal Reserve System abolished.^[88] They criticize the Federal Reserve System’s expansionary monetary policy in the 1920s, arguing that the policy allowed misallocations of capital resources and supported a massive stock price bubble. They also cite politically motivated expansions or tightening of currency in the 1970s and 1980s.^[88] The Austrian School, also known as the â€œVienna Schoolâ€ or the â€œPsychological Schoolâ€, is a heterodox school of economic thought that advocates adherence to strict methodological individualism. ... The Chicago school of economics is a school of thought favoring free-market economics practiced at and disseminated from the University of Chicago in the middle of the 20th century. ...

Handling of The Great Depression

Milton Friedman, leader of the Chicago School, argued that the Federal Reserve System did not cause the Great Depression, but made it worse by contracting the money supply at the very moment that markets needed liquidity. Since its entire existence was predicated on its mission to prevent events like the Great Depression, it had failed in what the 1913 bill tried to enact.^[89] Friedman explains his hypothesis on the cause of The Great Depression and the role the Federal Reserve played in it in his book and documentary series Free to Choose. An excerpt of his hypothesis:^[90] Milton Friedman (July 31, 1912 â€“ November 16, 2006) was an American Nobel Laureate economist and public intellectual. ... For other uses, see The Great Depression (disambiguation). ... Free to Choose is both a book (ISBN 0156334607) and a ten-part television series. ...

This is also the current conventional wisdom on the matter, as both Ben Bernanke and other economists such as the late John Kenneth Galbraith- the latter being an ardent Keynesian- have upheld this reasoning. In an interview with Peter Jaworski (The Journal, Queen's University, March 15, 2002 - Issue 37, Volume 129) Friedman also said that ideally he would "prefer to abolish the federal reserve system altogether" rather than try to reform it, because it was a flawed system in the first place. He later said he would like to "abolish the Federal Reserve and replace it with a computer", meaning that it would be a mechanical system in nature that would keep the quantity of money going up at a steady rate. Friedman also believed that, ideally, the issuing power of money should rest with the Government instead of private banks issuing money through fractional reserve lending.^[91] John Kenneth Galbraith John Kenneth Galbraith (October 15, 1908â€“April 29, 2006) was an influential Canadian-American economist. ... Keynesian economics (pronounced kainzian, IPA ), also called Keynesianism, or Keynesian Theory, is an economic theory based on the ideas of the 20th-century British economist John Maynard Keynes. ... is the 74th day of the year (75th in leap years) in the Gregorian calendar. ... Also see: 2002 (number). ...

Ben Bernanke agreed that the Fed had made the Great Depression worse, saying in a 2002 speech:

Inflation

One major area of criticism focuses on the failure of the Federal Reserve System to stop inflation; this is seen as a failure of the Fed's legislatively mandated duty^[13] to maintain stable prices. These critics focus particularly on inflation's effects on wages, since workers are hurt if their wages do not keep up with inflation.^[94] They point out that wages, as adjusted for inflation, or real wages, have dropped in the past.^[95] The term real wages refer to wages that have been adjusted for inflation. ...

Milton Friedman alleged that the Fed caused the high inflation of the 1970s. When asked about the greatest economic problem of the day, he said the most pressing was how to get rid of the Federal Reserve.^[89] Friedman discusses the high inflation rate of the 1970s and other periods in Free to Choose:^[96] Free to Choose is both a book (ISBN 0156334607) and a ten-part television series. ...

United States Congressman Ron Paul, ranking member of the Subcommittee on Domestic and International Monetary Policy (of the House Banking Committee), has also criticized Federal Reserve policy for creating and downplaying excessive inflation:^[97] Ronald Ernest Ron Paul (b. ... Meeting of the House Financial Services Committee The United States House Committee on Financial Services (or House Banking Committee) oversees the entire financial services industry, including the securities, insurance, banking, and housing industries. ...

Opacity

Some argue that the Federal Reserve System is shrouded in excessive secrecy. Meetings of some components of the Fed are held behind closed doors, and the transcripts are released five years after the meeting was held.^[98] Even expert policy analysts are unsure about the logic behind Fed decisions.^[99] Critics argue that such opacity leads to greater market volatility, because the markets must guess, often with only limited information, about how the Fed is likely to change policy in the future. The jargon-laden fence-sitting opaque style of Fed communication, especially under the previous Fed Chairman Alan Greenspan, has often been called "Fed speak."^[99]

The Federal Reserve System has also been considered reserved in its relations with the media in an effort to maintain its carefully crafted image and resents any public information that runs contrary to this notion. Maria Bartiromo reported on CNBC that during a conversation at the White House Correspondents’ Dinner in April 2006, Federal Reserve Board Chairman Ben Bernanke stated investors had misinterpreted his recent congressional remarks as an indication the Fed was nearly done raising rates. This triggered a drop in stock prices just when the market was about to close.^[100]^[101]^[102] Maria Bartiromo is a business news anchor, reporter, and interviewer for CNBC television co-hosting the Closing Bell program from 3 to 5pm weekdays ET and is the host and managing editor for the nationally syndicated Wall Street Journal Report with Maria Bartiromo program. ... This article is about CNBC U.S., the business news channel in the U.S.. For other uses, see CNBC (disambiguation). ... For other uses, see White House (disambiguation). ...

In 1993, Rep. Henry Gonzalez confirmed that the Fed did have tapes and transcripts of the meetings and could have complied with the FOIA requests, but had misrepresented the existence of the transcripts and chosen to ignore questions from Congress.^[103] After the existence of the transcripts was revealed, the Fed agreed to release the transcripts on a five-year time lag. The time period has been extended, so that for example 1992's transcripts were not released until 1998.^[103] Henry Barbosa Gonzalez (May 3, 1916 - November 28, 2000) was a Democratic politician from the state of Texas. ...

Some critics believe the Fed exacerbated this idea when it decided to stop publishing the M3 aggregate of financial data, which details the total amount of money in circulation at a time. Some of them argue that it is a way the Fed could hide an impending economic disaster from the public if it felt the need.^[104] The Fed said that economists did not need M3 when they had M2, despite the fact that the M3 was the only aggregate to contain information regarding the most extravagant monetary exchanges, and therefore would be needed to have a complete understanding of the overall monetary policy in the United States.^[74]

Business cycles, libertarian philosophy and free markets

Economists of the Austrian School such as Ludwig von Mises contend that the Federal Reserve's operation amounts to an artificial manipulation of the money supply and has led to the boom/bust business cycle occurring over the last century. Many economic libertarians, such as Austrian School economist Murray Rothbard, believe that the Federal Reserve's manipulation of the money supply to stop "gold flight" from England caused, or was instrumental in causing, the Great Depression. See Austrian Business Cycle Theory. In general, laissez-faire advocates of free banking argue that there is no better judge of the proper interest rate and money supply than the market.^[105] Ludwig Heinrich Edler von Mises (September 29, 1881 â€“ October 10, 1973) (pronounced was a notable economist and a major influence on the modern libertarian movement. ... Fractional-reserve banking refers to a financial system in which some fraction of the deposits can be used to finance profitable but illiquid investments. ... Economic libertarianism is the doctrine that government should not engage in economic interventionism, but only prohibit force and fraud. ... Murray Newton Rothbard (March 2, 1926 â€“ January 7, 1995) was an influential American economist, historian and natural law theorist belonging to the Austrian School of Economics who helped define modern libertarianism. ... For other uses, see England (disambiguation). ... For other uses, see The Great Depression (disambiguation). ... This article or section is not written in the formal tone expected of an encyclopedia article. ... Laissez-faire is short for laissez faire, laissez passer, a French phrase meaning to let things alone, let them pass. First used by the eighteenth century Physiocrats as an injunction against government interference with trade, it is now used as a synonym for strict free market economics. ... Please wikify (format) this article or section as suggested in the Guide to layout and the Manual of Style. ...

Many libertarians also contend that the Federal Reserve Act is unconstitutional. Congressman Ron Paul (ranking member of the House Subcommittee on Domestic Monetary Policy), for example, argues that: This article is about the political philosophy based on private property rights. ... Ronald Ernest Ron Paul (b. ...

Congress

Congressman Louis T. McFadden, Chairman of the House Committee on Banking and Currency from 1920–31, accused the Federal Reserve of deliberately causing the Great Depression. In several speeches made shortly after he lost the chairmanship of the committee, McFadden claimed that the Federal Reserve was run by Wall Street banks and their affiliated European banking houses.^{[citation needed]} On June 10, 1932, McFadden said: This article or section does not adequately cite its references or sources. ... is the 161st day of the year (162nd in leap years) in the Gregorian calendar. ... Year 1932 (MCMXXXII) was a leap year starting on Friday (the link will display full 1932 calendar) of the Gregorian calendar. ...

Quite a few Congressmen who have been involved in the House and Senate Banking and Currency Committees have been open critics of the Federal Reserve. Currently, Congressman Paul is the ranking member of the Monetary Policy Subcommittee and he is a staunch opponent of the Federal Reserve System. During each Congress Paul introduces a bill to abolish the Federal Reserve System (H.R. 2755 - 110th Congress, H.R. 2778 - 108th Congress, H.R. 5356 - 107th Congress, H.R. 1148 - 106th Congress), although he has yet to have any hearings held on his legislation or even to gather any cosponsors.^[108] It has often been said that the Federal Reserve is a creature of Congress and it is the fluctuating opinion of that body that it answers to.^[109]

See also

The Austrian business cycle theory is in many ways the quintessence of Austrian economics, as it integrates so many ideas that are unique to that school of thought, such as capital structure, monetary theory, economic calculation, and entrepreneurship. ... Cash out refinancing is in the case of real property, when a loan is placed by an owner on property already owned, and the loan amount is above and beyond the cost of transaction, payoff of existing liens, and related expenses. ... A measure of inflation that excludes certain items which face volatile price movements. ... The discount window is an instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions. ... To meet Wikipedias quality standards, this article or section may require cleanup. ... Executive Order 11110 was issued by president John F. Kennedy on June 4, 1963. ... Federal Funds transactions redistribute bank reserves. ... The Federal Reserve Act (ch. ... The Federal Reserve Police is the law enforcement arm of the Federal Reserve System, the central banking system of the United States. ... The Federal Reserve of the United States gathers and publishes certain economic data and releases them as a Federal Reserve Statistical Release. ... The United States Bullion Depository is a fortified vault building located near Fort Knox, Kentucky which is used to store the majority of United States gold metal holdings, as well as from time to time, other precious items belonging to the United States government. ... Please wikify (format) this article or section as suggested in the Guide to layout and the Manual of Style. ... The Greenspan put was a description of the perceived attempt of then-chairman of the Federal Reserve Board, Alan Greenspan, of ensuring liquidity in capital markets by lowering interest rates if necessary. ... For other uses, see Gold standard (disambiguation). ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Fiscal policy Spending Deficit Debt Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Banking Regulation Government debt (also known as public debt or national debt) is... // When money is deposited in a bank it can then be lent out to another person. ... This article is about short-term financing. ... In macroeconomics, money supply (monetary aggregates, money stock) is the quantity of currency and money in bank accounts in the hands of the non-bank public available within the economy to purchase goods, services, and securities. ... Primary dealers are banks or brokerage firms who may trade directly with the Federal Reserve System. ... Repurchase agreements (RPs or Repos) are financial instruments used in the money markets and capital markets. ... USD redirects here. ...

References

^ Mishkin, Frederic S. (2007). The Economics of Money, Banking, and Financial Markets (Alternate Edition). Boston: Addison Wesley, 386. ISBN 0-321-42177-9.
^ ^a ^b Flaherty, Edward. "A Brief History of Central Banking in the United States". University of Groningen, Netherlands.
^ Herrick, Myron (1908-03). "The Panic of 1907 and Some of Its Lessons". Annals of the American Academy of Political and Social Science.
^ ^a ^b Whithouse, Michael (1989-05). "Paul Warburg's Crusade to Establish a Central Bank in the United States". Minnesota Federal Reserve.
^ ^a ^b ^c "America's Unknown Enemy: Beyond Conspiracy". American Institute of Economic Research.
^ "Born of a panic: Forming the Federal Reserve System". Minnesota Federal Reserve (1988-08).
^ Johnson, Roger (1999-12). "Historical Beginnings… The Federal Reserve". Federal Reserve Bank of Boston.
^ Bartlett, Bruce (2004-06-14). "Warriors Against Inflation". National Review.
^ Source: A Monetary Chronology of the United States, American Institute for Economic Research, July 2006
^ A Monetary Chronology of the United States, American Institute for Economic Research, July 2006
^ Federal Reserve Act
^ ^a ^b ^c ^d The Federal Reserve in Plain English - An easy-to-read guide to the structure and functions of the Federal Reserve System See page 5 of the document for the purposes and functions. See page 14 titled, "conducting monetary policy" for information about inflation as a measure of the Fed's success. See page 11 for how open market operations work.
^ ^a ^b ^c FRB: Mission
^ ^a ^b ^c ^d ^e ^f ^g ^h ebook: The Federal Reserve - Purposes and Functions:http://www.federalreserve.gov/pf/pf.htm

for info on government regulations, see pages 13 and 14. Addressing bank panics on page 83. Implementation of monetary policy on page 12 and 36. Board and reserve banks responsibility on page 12. Key laws affecting the federal reserve on page 11. Monetary policy uncertainties on pages 18-19.
^ Federal Reserve Bank of Minneapolis - Glossary
^ ^a ^b ^c ^d ^e The Federal Reserve, Monetary Policy and the Economy - Everyday Economics - FRB Dallas
^ ^a ^b ^c The Fed: Our Central Bank - Consumer Information, Federal Reserve Bank of Chicago Quotes:

On the system being built on compromise:

"Eventually, the Fed--basically a creature borne of compromise--emerged with a structure designed to reconcile the needs, fears, and prejudices of many different interests."
^ Federal Funds - Fedpoints - Federal Reserve Bank of New York
^ Instruments of the Money Market: Chapter 2 - Federal Funds - Federal Reserve Bank of Richmond
^ FRB: Speech-Kohn, The Evolving Role of the Federal Reserve Banks-November 3, 2006
^ US CODE: Title 12,301. Powers and duties of board of directors; suspension of member bank for undue use of bank credit
^ US CODE: Title 18,1014. Loan and credit applications generally; renewals and discounts; crop insurance
^ ^a ^b ^c FRB: FAQs: Federal Reserve System
^ Structure and Functions - The Fed's Structure
^ Federal Reserve Board, Annual Financial Statements (2006).
^ See 12 U.S.C. § 241.
^ http://www.ca8.uscourts.gov/opndir/05/04/042357P.pdf
^ 12 U.S.C. § 247.
^ ^a ^b See 12 U.S.C. § 242.
^ See generally 12 U.S.C. § 248.
^ 680 F.2d 1239 (9th Cir. 1982).
^ Kennedy C. Scott v. Federal Reserve Bank of Kansas City, et al.
^ US CODE: Title 12,SUBCHAPTER VII—DIRECTORS OF FEDERAL RESERVE BANKS; RESERVE AGENTS AND ASSISTANTS
^ http://www.newyorkfed.org/newsevents/news/aboutthefed/2008/an080305.html
^ 12 U.S.C. § 222.
^ FRBB: Federal Reserve Membership
^ http://www.bos.frb.org/bankinfo/members/100604.pdf
^ http://www.frbsf.org/banking/institutions2006/nat_bk3Q06.pdf
^ ^a ^b ^c http://www4.fdic.gov/IDASP/index.asp Cookies must be enabled to use this interactive website. Choose the "Find Institutions" section. Then leave all of the fields with the default value then choose "find". Wait a few momements to be promted to "save as". It will be a 3.4MB .csv file that will be downloaded. This file can be viewed with a spreadsheet such as openoffice.org or microsoft excel.
^ http://www.law.cornell.edu/uscode/html/uscode12/usc_sec_12_00001468----000-.html
^ ^a ^b FRB: Federal Open Market Committee
^ ^a ^b ^c ^d ^e federal reserve education website - Monetary Policy Basics: http://www.federalreserveeducation.org/fed101_html/policy/basics_print.htm
^ The Federal Reserve System In Action - Federal Reserve Bank of Richmond
^ FRB: Monetary Policy, Open Market Operations
^ FRB: Monetary Policy, the Discount Rate
^ ^a ^b FRB: Monetary Policy, Reserve Requirements
^ Repurchase and Reverse Repurchase Transactions - Fedpoints - Federal Reserve Bank of New York
^ EconTalk, Podcast Archive, Featuring Milton Friedman: Library of Economics and Liberty
^ Federal Reserve Bank San Francisco( 2004)
^ Board of Governors of the Federal Reserve System, The Federal Reserve System: Purposes & Functions, 3 The Implementation of Monetary Policy, page 30
^ Board of Governors of the Federal Reserve System, The Federal Reserve System: Purposes & Functions, 3 The Implementation of Monetary Policy, page 27
^ Board of Governors of the Federal Reserve System, The Federal Reserve System: Purposes & Functions, 3 The Implementation of Monetary Policy, page pages 29-30
^ Board of Governors of the Federal Reserve System, The Federal Reserve System: Purposes & Functions, 3 The Implementation of Monetary Policy, page 31
^ "2 former Bear Stearns hedge fund managers charged", Press of Atlantic City (2008-06-19).
^ "JPMorgan’s $12 Billion Bailout", The New York Times (2008-03-18).
^ ^a ^b ^c FRB: Temporary Auction Facility FAQ: http://www.federalreserve.gov/monetarypolicy/taffaq.htm
^ FRB: Press Release-Federal Reserve intends to continue term TAF auctions as necessary-December 21, 2007
^ Federal Reserve press release - Announcement of the creation of the Term Securities Lending Facility: http://federalreserve.gov/newsevents/press/monetary/20080311a.htm
^ Bloomberg.com - Bernanke Seeks to Avert Deeper Slump by Accepting Mortgage Debt: http://www.bloomberg.com/apps/news?pid=20601103&sid=a6aFI7RKVhEA&refer=news

"The Fed pledged yesterday to lend, in return for mortgage debt, $200 billion of Treasuries to the securities firms that trade directly with the central bank. Officials told reporters later that the program may escalate from there as the central bank seeks to break the logjam in the home-loan market. The step goes beyond past initiatives because the Fed can now inject liquidity without flooding the banking system with cash. Bernanke and his colleagues are trying to halt a cycle in which the losses on mortgage investments cause banks to cut their lending, sending the economy into a deeper contraction."

"Unlike the newest tool, the past steps added cash to the banking system, which affects the Fed's benchmark interest rate. The central bank had to withdraw the funds through operations with securities dealers to keep the rate from falling below the target. By contrast, the TSLF injects liquidity by lending Treasuries, which doesn't affect the federal funds rate. That leaves the Fed free to address the mortgage crisis directly without concern about adding more cash to the system than it wants. The Fed has about $713 billion of Treasuries. Direct purchases of mortgage-backed assets, such as advocated by some analysts and investors, would affect the price of the securities, going against the Fed's aims, officials said yesterday. They said the goal is to get the market back to regular trading conditions rather than to target a level for spreads."
^ Federal Reserve Announces Establishment of Primary Dealer Credit Facility - Federal Reserve Bank of New York
^ Bloomberg.com: Economy
^ ^a ^b Primary Dealer Credit Facility: Frequently Asked Questions - Federal Reserve Bank of New York
^ http://www.cnbc.com/id/23664032/
^ http://www.frbatlanta.org/invoke.cfm?objectid=526AFBC6-5056-9F12-120FEABD6D2ADA91&method=display_body
^ Announcement of the creation of the Term Auction Facility - FRB: Press Release--Federal Reserve and other central banks announce measures designed to address elevated pressures in short-term funding markets--December 12, 2007: http://www.federalreserve.gov/newsevents/press/monetary/20071212a.htm
^ Financial Times - US banks borrow $50bn via new Fed facility: http://www.ft.com/cms/s/66db756a-de5d-11dc-9de3-0000779fd2ac.html A quote from the article: 'Before its introduction, banks either had to raise money in the open market or use the so-called “discount window” for emergencies. However, last year many banks refused to use the discount window, even though they found it hard to raise funds in the market, because it was associated with the stigma of bank failure.'
^ bloomberg.com - Fed Boosts Next Two Special Auctions to $30 Billion: http://www.bloomberg.com/apps/news?pid=20601103&refer=news&sid=aBPbErlft9cI A quote from the article: "The Board of Governors of the Federal Reserve System established the temporary Term Auction Facility, dubbed TAF, in December to provide cash after interest-rate cuts failed to break banks' reluctance to lend amid concern about losses related to subprime mortgage securities. The program will make funding from the Fed available beyond the 20 authorized primary dealers that trade with the central bank."
^ economist.com - A dirty job, but someone has to do it: http://www.economist.com/displaystory.cfm?story_id=10286586 A quote from the article:

"The Fed's discount window, for instance, through which it lends direct to banks, has barely been approached, despite the soaring spreads in the interbank market. The quarter-point cuts in its federal funds rate and discount rate on December 11th were followed by a steep sell-off in the stockmarket...The hope is that by extending the maturity of central-bank money, broadening the range of collateral against which banks can borrow and shifting from direct lending to an auction, the central bankers will bring down spreads in the one- and three-month money markets. There will be no net addition of liquidity. What the central bankers add at longer-term maturities, they will take out in the overnight market."

"But there are risks. The first is that, for all the fanfare, the central banks' plan will make little difference. After all, it does nothing to remove the fundamental reason why investors are worried about lending to banks. This is the uncertainty about potential losses from subprime mortgages and the products based on them, and—given that uncertainty—the banks' own desire to hoard capital against the chance that they will have to strengthen their balance sheets."
^ economist.com - Unclogging the system: http://www.economist.com/daily/news/displaystory.cfm?story_id=10278482&top_story=1
^ ^a ^b marketwatch.com - Fed, top central banks to flood markets with cash: http://www.marketwatch.com/news/story/fed-top-central-banks-flood/story.aspx?guid=%7b6FAFC482-F8E4-4F23-A021-52DC7DE8938C%7d&print=true&dist=printTop
^ Chairman Ben S. Bernanke - The economic outlook Before the Committee on the Budget, U.S. House of Representatives January 17, 2008: http://www.federalreserve.gov/newsevents/testimony/bernanke20080117a.htm
^ Term Securities Lending Facility: Frequently Asked Questions: http://www.newyorkfed.org/markets/tslf_faq.html
^ bloomberg.com - Fed to Lend $200 Billion, Accept Mortgage Securities: http://www.bloomberg.com/apps/news?pid=20601087&sid=a6LLuTru5Sio&refer=home
^ ^a ^b Discontinuance of M3
^ Federal Reserve Education
^ ftp://ftp.bls.gov/pub/special.requests/cpi/cpiai.txt
^ Kevin Phillips: Numbers Racket - Why the Economy is Worse than We Know Harper's May 2008
^ "These definitions make clear a commitment to low inflation. But they leave open whether, for example, the inflation rate prevailing today--about 2-1/2 percent for the core consumer price index (CPI) measure of consumer prices--is consistent with this definition." http://www.federalreserve.gov/boarddocs/speeches/2001/20010717/default.htm
^ FRB Speech, Bernanke-A perspective on inflation targeting-March 25, 2003
^ What's The Fuss Over Inflation Targeting?
^ Bernanke, Ben S.: The Inflation-Targeting Debate
^ Kevin Phillips: Numbers Racket - Why the Economy is Worse than We Know, Harper's May 2008
^ Chicago Fed - Demonstrating Knowledge of the Fed: http://www.chicagofed.org/education_resources/files/Demonstrating_Knowledge.ppt
^ "Factors Affecting Reserve Balances of Depository Institutions and Condition Statement of Federal Reserve Banks" (HTML, with PDF available). Federal Reserve. Retrieved on 2008-03-20.
^ ^a ^b North, Gary (2007-05-30). "My Recommended Federal Reserve Policy". Lew Rockwell.^{[unreliable source?]}
^ Paul, Ron (2002-06-10). "Gold, Dollars, and Federal Reserve Mischief". US House of Representatives representative homepage.
^ Rockwell, Llewelynn (1996-05). "Ending the Fed's Free Ride". Mises Institute.
^ ^a ^b "MONEY RULES: The Role of the Federal Reserve date=2002-01-09". Hoover Institution.
^ ^a ^b "Interview with Milton Friedman". Minneapolis Federal Reserve (1992-06).
^ Transcript of part 3 of free to choose titled, "anatomy of a crisis":http://www.freetochoose.net/1980_vol3_transcript.html
^ "Greenspan voices concerns about quality of economic statistics". Stanford News Service (1997-09-09).
^ FRB Speech, Bernanke - On Milton Friedman's ninetieth birthday - November 8, 2002
^ To Fill His Shoes, Mr. Bernanke, Learn to Dance
^ Federal Reserve Bank of Minneapolis - The Region - Book Review: The Great Wave: Price Revolutions and the Rhythm of History (September 1997)
^ FT.com / World - US real wages fall at fastest rate in 14 years
^ transcript of part 9 of free to choose titled, "how to cure inflation":http://www.freetochoose.net/1980_vol9_transcript.html
^ Monetary Inflation is the Problem by Ron Paul before the U.S. House of Representatives December 4, 2006: http://www.house.gov/paul/tst/tst2006/tst120406.htm
^ Poole, William (2002-07). "Untold story of FOMC: Secrecy is exaggerated". St. Louis Federal Reserve.
^ ^a ^b Andrews, Edmund (2005-11-01). "News Analysis: Fed in a fishbowl? An era of secrecy seems over". New York Times. International Herald Tribune.
^ FRB: Speech, Bernanke-Fedspeak-January 3, 2004
^ Fed Speak [rec.humor.funny]
^ Economist's View: Fed Speak from Atlanta President Guynn, Dallas President Fisher Muzzles Himself, and Greenspan Continues the Conundrum
^ ^a ^b "Inner City Press' Federal Reserve Reporter". Inner City Press (1999-05-17).
^ Levy, Harlan (2005-12-01). "Federal Reserve money supply report is about to fall into the abyss". Connecticut Journal-Inquirer.
^ "Three National Treasures author=Llewelyn Rockwell". Lew Rockwell (1986).
^ Paul, Ron (2002-09-10). "Abolish the Federal Reserve". US House of Representatives representative homepage.
^ Louis T. McFadden's U.S. House Speech,10 June 1932
^ H.R. 2755: Federal Reserve Board Abolition Act (GovTrack.us)
^ Wooley, John T. (1984). "Monetary Politics: The Federal Reserve & The Politics of Monetary Policy, p. 153". Cambridge University Press.

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William Greider is an American author who writes primarily about economics. ... Paul Adolph Volcker (born September 5, 1927 in Cape May, New Jersey), is best-known as the Chairman of the Federal Reserve (The Fed) under United States Presidents Jimmy Carter and Ronald Reagan (from August 1979 to August 1987). ... Squalltoonix (born March 6, 1926 in New York City) is an American economist and was Chairman of the Board of Governors of the Federal Reserve of the United States from 1987 to 2006. ... The Asian financial crisis was a financial crisis that started in July 1997 in Thailand and affected currencies, stock markets, and other asset prices in several Asian countries, many considered East Asian Tigers. ... The dot-com bubble was a speculative bubble covering roughly 1995â€“2001 during which stock markets in Western nations saw their value increase rapidly from growth in the new Internet sector and related fields. ... A sequential look at United Flight 175 crashing into the south tower of the World Trade Center The September 11, 2001 attacks (often referred to as 9/11â€”pronounced nine eleven or nine one one) consisted of a series of coordinated terrorist[1] suicide attacks upon the United States, predominantly...

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Ludwig von Mises Institute for Austrian Economics, Auburn, Alabama The Ludwig von Mises Institute (LvMI), based in Auburn, Alabama, is a libertarian academic organisation engaged in research and scholarship in the fields of economics, philosophy and political economy. ... FRN redirects here. ... USD redirects here. ... Seal of the U.S. Mint Denver United States mint building The United States Mint primarily produces circulating coinage for the United States to conduct its trade and commerce. ... Top row: Sacagawea Dollar, Lincoln Cent, and Roosevelt Dime. ... The United States one-cent coin is a unit of currency equaling one-hundredth of a United States dollar. ... The United States five-cent coin, commonly called a nickel, is a unit of currency equaling one-twentieth, or five hundredths, of a United States dollar. ... For other uses, see Dime. ... A quarter is a coin worth one-quarter of a United States dollar, or 25 cents. ... The Half Dollar of the United States has been produced nearly every year since the inception of the United States Mint in 1794. ... Dollar coins have been minted in the United States in gold, silver, and base metal versions. ... FRN redirects here. ... For the US one-dollar coin, see United States dollar coin. ... Face of the Series 1995 $2 bill Back of the Series 1995 $2 bill The United States two-dollar bill ($2) is a current denomination of U.S. currency. ... Obverse of the $5 bill Reverse of the $5 bill The United States five-dollar bill ($5) is a denomination of United States currency. ... Obverse of the current $10 bill, which entered circulation March 2, 2006 Reverse of the current $10 bill The United States ten-dollar bill ($10) is a denomination of United States currency. ... The United States twenty-dollar bill ($20) is a denomination of United States currency. ... 2004 Federal Reserve Note - Obverse 2004 Federal Reserve Note - Reverse The United States fifty-dollar bill ($50) is a denomination of United States currency. ... Obverse of the Series 2003A $100 bill Reverse of the Series 2003A $100 bill The United States one hundred-dollar bill ($100) is a denomination of United States currency. ... Today, the currency of the United States, the U.S. dollar, is printed in bills in denominations of $1, $2, $5, $10, $20, $50, and $100. ... Quarter bicentennial reverse Half dollar bicentennial reverse Dollar bicentennial reverse All quarter, half dollar and dollar coins produced by the United States Mint during the years 1975 and 1976 bore special designs on their reverse, commemorating the 200th anniversary (bicentennial) of the independence of the United States. ... Commemorative coinage of the United States consists of coins that have been minted to commemorate a particular event, person or organization. ... Six Confederate notes The Confederate States of America dollar was first issued into circulation in April, 1861, when the Confederacy was only two months old, and on the eve of the outbreak of the Civil War. ... Fake denominations of United States currency have been created by individuals as practical jokes, by money artists such as J. S. G. Boggs, or as genuine attempts at counterfeiting. ... Production values for each year are the sum of all facility outputs of business strike coins. ... For other uses, see In God We Trust (disambiguation). ... The Federal Open Market Committee (FOMC), a component of the Federal Reserve System, is charged under U.S. law with overseeing open market operations in the United States, and is the principal tool of US national monetary policy. ... The Chairman of the Board of Governors of the United States Federal Reserve is the head of the central bank of the United States and one of the more important decision-makers in American economic policies. ... The Fed redirects here. ... FRN redirects here. ... Federal Reserve bank notes were United States currency issued by individual Federal Reserve banks. ... ... The Federal Reserve of the United States gathers and publishes certain economic data and releases them as a Federal Reserve Statistical Release. ... The Rainbow Books are a collection of standards defining the allowed formats of Compact Discs. ... Federal Funds transactions redistribute bank reserves. ... The federal funds rate is the interest rate at which private depository institutions lend balances (federal funds) at the Federal Reserve to other depository institutions overnight. ... The Federal Reserve Act (ch. ... The Depository Institutions Deregulation and Monetary Control Act, a United States federal financial statute law passed in 1980, gave the Federal Reserve greater control over non-member banks. ... This article is about the history of central banking in the United States, from the 1790s to the present. ... The Aldrich-Vreeland Act of 1908 established a National Monetary Commission which recommended the Federal Reserve Act of 1913. ... Image File history File links This is a lossless scalable vector image. ... American history redirects here. ... This is a timeline of United States history. ... The pre-Columbian era incorporates all period subdivisions in the history and prehistory of the Americas before the appearance of significant European influences on the American continents. ... For colonies not part of the 13 colonies see European colonization of the Americas or British colonization of the Americas. ... In 1775, the British claimed authority over the red and pink areas on this map and Spain ruled the orange. ... The United States Declaration of Independence was an act of the Second Continental Congress, adopted on July 4, 1776, which declared that the Thirteen Colonies in North America were Free and Independent States and that all political connection between them and the State of Great Britain, is and ought to... This article is about political and social developments, including the origins and aftermath of the war. ... -1... Combatants United States of America (Union) Confederate States of America (Confederacy) Commanders Abraham Lincoln, Ulysses S. Grant Jefferson Davis, Robert E. Lee Strength 2,200,000 1,064,000 Casualties 110,000 killed in action, 360,000 total dead, 275,200 wounded 93,000 killed in action, 258,000 total... The history of the United States (1865â€“1918) covers Reconstruction and the rise of industrialization in the United States. ... For other uses, see The Great Depression (disambiguation). ... The United States home front during World War II covers the developments within the United States, 1940-1945, to support its efforts during the Second World War. ... For other uses, see Cold War (disambiguation). ... Belligerents United Nations: Republic of Korea Australia Belgium Canada Colombia Ethiopia France Greece Luxembourg Netherlands New Zealand Philippines South Africa Thailand Turkey United Kingdom United States Naval Support and Military Servicing/Repairs: Japan Medical staff: Denmark Italy Norway India Sweden DPR Korea PR China Soviet Union Commanders Syngman Rhee Chung... American Civil Rights Movement redirects here. ... Combatants Republic of Vietnam United States Republic of Korea Thailand Australia New Zealand The Philippines National Front for the Liberation of South Vietnam Democratic Republic of Vietnam Peopleâ€™s Republic of China Democratic Peoples Republic of Korea Strength US 1,000,000 South Korea 300,000 Australia 48,000... This article is about the U.S.-led campaign against the spread of terrorism. ... // 2000 282,338,631 2010 309,162,581 2020 336,031,546 2030 363,811,435 2040 392,172,658 2050 420,080,587 2060 450,505,985 2070 480,568,004 2080 511,442,859 2090 540,405,985 2100 571,440,474 The US population in 1900 was... 48-star flag, 1957 This is a survey of the postage stamps and postal history of the United States. ... The United States Constitution, the supreme law of the United States The United States Reports, the official reporter of the Supreme Court of the United States The law of the United States was originally largely derived from the common law of the system of English law, which was in force... The United States Bill of Rights consists of the first 10 amendments to the United States Constitution. ... theSeparation of powers is a political doctrine under which the legislative, executive and judicial branches of government are kept distinct, to prevent abuse of power. ... This article does not cite its references or sources. ... Robert F. Kennedy Department of Justice Building, Washington, D.C. For animal rights group, see Justice Department (JD) The United States Department of Justice (DOJ) is a Cabinet department in the United States government designed to enforce the law and defend the interests of the United States according to the... F.B.I. and FBI redirect here. ... Type Bicameral Houses Senate House of Representatives President of the Senate President pro tempore Dick Cheney, (R) since January 20, 2001 Robert C. Byrd, (D) since January 4, 2007 Speaker of the House Nancy Pelosi, (D) since January 4, 2007 Members 535 plus 4 Delegates and 1 Resident Commissioner Political... Type Bicameral Speaker of the House of Representatives House Majority Leader Nancy Pelosi, (D) since January 4, 2007 Steny Hoyer, (D) since January 4, 2007 House Minority Leader John Boehner, (R) since January 4, 2007 Members 435 plus 4 Delegates and 1 Resident Commissioner Political groups Democratic Party Republican Party... Type Upper House President of the Senate Richard B. Cheney, R since January 20, 2001 President pro tempore Robert C. Byrd, D since January 4, 2007 Members 100 Political groups Democratic Party Republican Party Last elections November 7, 2006 Meeting place Senate Chamber United States Capitol Washington, DC United States... The Cabinet meets in the Cabinet Room on May 16, 2001. ... This is an incomplete list of federal agencies, which are either departmental agencies within the executive branch of the United States government or are Independent Agencies of the United States Government (including regulatory agencies and government corporations). ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas US Government Portal The United States federal courts are the system of courts organized under the... The Supreme Court of the United States (sometimes colloquially referred to by the acronym SCOTUS[1]) is the highest judicial body in the United States and leads the federal judiciary. ... The United States courts of appeals (or circuit courts) are the mid-level appellate courts of the United States federal court system. ... Logo used on the Intelligence Community web site. ... CIA redirects here. ... The Defense Intelligence Agency, or DIA, is a major producer and manager of military intelligence for the United States Department of Defense. ... NSA redirects here. ... The United States Army is the largest, and by some standards oldest, established branch of the armed forces of the United States and is one of seven uniformed services. ... USN redirects here. ... USCG HH-65 Dolphin USCG HH-60J JayHawk USCG HC-130H departs Mojave USCG HC-130H on International Ice Patrol duties The United States Coast Guard (USCG) is at all times a branch of the U.S. military, a maritime law enforcement agency, and a federal regulatory body. ... USAF redirects here. ... The United States Marine Corps (USMC) is a branch of the United States armed forces responsible for providing force projection from the sea,[1] using the mobility of the U.S. Navy to rapidly deliver combined-arms task forces and is one of seven uniformed services. ... Politics of the United States takes place in a framework of a presidential republic, whereby the President of the United States is head of state, head of government, and of a de facto two-party legislative and electoral system. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas US Government Portal The political units and divisions of the United States include: The 50 states... Political parties in the United States lists political parties in the United States. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas Politics Portal Further information: Politics of the United States#Organization of American political parties The Democratic... GOP redirects here. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas US Government Portal Third parties in the United States are political parties other than the two... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countriesAtlas Politics Portal The United States has a federal government, with elected officials at federal (national), state and... Political Compass. ... This article provides a list of major political scandals of the United States. ... Map of results by state of the 2004 U.S. presidential election, representing states won by the Democrats as blue and those won by the Republican Party as red. ... This article is about the national personification of the USA. For other uses, see Uncle Sam (disambiguation). ... United States territory is any extent of region under the jurisdiction of the federal government of the United States,[1] including all waters[2] (around islands or continental tracts). ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas US Government Portal A U.S. state is any one of the fifty subnational entities of... This is a list of the cities, towns, and villages of the United States. ... United States of America, showing states, divided into counties. ... This list of regions of the United States includes official (governmental) and non-official areas within the borders of the United States, not including U.S. states, the federal district of Washington, D.C. or standard subentities such as cities or counties. ... This article is about the region in the United States of America. ... It has been suggested that Middle Atlantic States be merged into this article or section. ... Historic Southern United States. ... Midwest redirects here. ... For other uses, see Great Plains (disambiguation). ... Regional definitions vary from source to source. ... The Southwest could be defined as the states south, or for the most part west of the Mississippi River, with the qualification of a certain northern limit, such as the 37, or 38, or 39, or 40 degree north line. ... The list of mountains of the United States shows the location of mountains in a given state. ... The Appalachian Mountains are a vast system of mountains in eastern North America. ... For individual mountains named Rocky Mountain, see Rocky Mountain (disambiguation). ... Rivers in the United States is a list of rivers in the United States. ... For the river in Canada, see Mississippi River (Ontario). ... The Missouri River is a tributary of the Mississippi River in the United States. ... The Colorado River from the bottom of Marble Canyon, in the Upper Grand Canyon Colorado River in the Grand Canyon from Desert View The Colorado River from Laughlin Horseshoe Bend is a horseshoe-shaped meander of the Colorado River located near the town of Page, Arizona The Colorado River is... This is a list of the extreme points of the United States, the points that are farther north, south, east, or west than any other location in the country. ... The National Park System of the United States is the collection of physical properties owned or administered by the National Park Service. ... Water supply and sanitation in the United States is provided by towns and cities, public utilities that span several jurisdictions and rural cooperatives. ... USD redirects here. ... Elaborate marble facade of NYSE as seen from the intersection of Broad and Wall Streets For other uses, see Wall Street (disambiguation). ... This article does not cite any references or sources. ... The standard of living in the United States is one of the highest in the world by almost any measure. ... For information on household income, see Household income in the United States. ... For information on the income of individuals, see Personal income in the United States. ... This graph shows the household income of the given percentiles from 1967 to 2003, in 2003 dollars. ... Single family homes such as this are indicative of the American middle class. ... The primary regulator of communications in the United States is the Federal Communications Commission. ... This article adopts the US Department of Transportation definition of passenger vehicle The United States is home to the largest passenger vehicle market of any country,[1] which is a consequence of the fact that it has the largest Gross Domestic Product of any country in the world. ... Interstate Highways in the 48 contiguous states. ... Current U.S. Route shield Current U.S. Route shield in California The system of United States Numbered Highways (often called U.S. Routes or U.S. Highways) is an integrated system of roads and highways in the United States numbered within a nationwide grid. ... There arergwertwertert[1] Kyle Railroad (KYLE) [2] Missouri and Northern Arkansas Railroad (MNA) [3] Montana Rail Link (MRL) [4] Montreal, Maine and Atlantic Railway (MMA) [5] Nebraska, Kansas and Colorado RailNet (NKCR) New York, Susquehanna and Western Railway (NYSW) [6] Northern Plains Railroad Paducah and Louisville Railway (PAL) [7] Palouse... The United States of America has a large and lucrative tourism industry serving millions of international and domestic tourists. ... The first U.S. census, in 1790, recorded four million Americans. ... For other uses, see American English (disambiguation). ... A monument to the working and supporting classes along Market Street in the heart of San Franciscos Financial District, home to tens of thousands of professional and managerial middle class workers each day. ... For other uses, see American Dream (disambiguation). ... The percentage of households and individuals over the age of 25 with incomes exceeding $100,000 in the US.[1][2] Affluence in the United States refers to an individuals or households state of being in an economically favorable position in contrast to a given reference group. ... A monument to the working and supporting classes along Market Street in the heart of San Franciscos Financial District, home to tens-of-thousands of professional and managerial middle class workers each day. ... Percent below each countrys official poverty line, according to the CIA factbook. ... This graph shows the educational attainment since 1947. ... Violent conforntation between working class union members and law enforecement such as the one between teamsters and Minneapolis police above were commonly frowned upon by professional middle class. ... Sports in the United States, as in other countries, are an important part of the national culture. ... Strictly speaking, the United States does not have national holidays (i. ... Prisons in the United States are operated by both the federal and state governments as incarceration is a concurrent power under the Constitution of the United States. ... Health care in the United States is provided by many separate legal entities. ... This article is about the high culture and popular culture of the United States. ... The United States is home to a wide array of regional styles and scenes. ... American classical music refers to music written in the United States but in the European classical music tradition. ... American folk music, also known as Americana, is a broad category of music including Native American music, Bluegrass, country music, gospel, old time music, jug bands, Appalachian folk, blues, Tejano and Cajun. ... The first major American popular songwriter, Stephen Foster Even before the birth of recorded music, American popular music had a profound effect on music across the world. ... For other uses, see Jazz (disambiguation). ... This article is about television in the United States, specifically its history, art, business and government regulation. ... American cinema has had a profound effect on cinema across the world since the early 20th century. ... Hollywood redirects here. ... American literature refers to written or literary work produced in the area of the United States and Colonial America. ... The folklore of the United States, or American folklore, is one of the folk traditions which has evolved on the North American continent since Europeans arrived in the 16th century. ... This article or section does not cite its references or sources. ... Transcendentalism was a group of new ideas in literature, religion, culture, and philosophy that emerged in New England in the early-to mid-19th century. ... The Harlem Renaissance was named after the anthology The New Negro, edited by Alain Locke in 1925. ... Beats redirects here. ... Albert Bierstadt, The Rocky Mountains, Landers Peak, 1863, Hudson River School Visual arts of the United States refers to the history of painting and visual art in the United States. ... Jackson Pollock, No. ... This article does not cite any references or sources. ... Closely related to the development of American music in the early 20th century was the emergence of a new, and distinctively American, art form -- modern dance. ... The United States has a history of architecture that includes a wide variety of styles. ... Union Jack. ... Social issues are matters which directly or indirectly affect many or all members of a society and are considered to be problems, controversies related to moral values, or both. ... Main articles: Adolescent sexuality and Adolescent sexual behavior Adolescent sexuality in the United States relates to the sexuality of American adolescents and its place in American society, both in terms of their feelings, behaviors and development and in terms of the response of the government, educators and interested groups. ... Manifestations Slavery Racial profiling Lynching Hate speech Hate crime Genocide (examples) Ethnocide Ethnic cleansing Pogrom Race war Religious persecution Blood libel Paternalism Police brutality Movements Policies Discriminatory Race / Religion / Sex segregation Apartheid Redlining Internment Ethnocracy Anti-discriminatory Emancipation Civil rights Desegregation Integration Equal opportunity Counter-discriminatory Affirmative action Racial quota... Progress of America, 1875, by Domenico Tojetti American exceptionalism (cf. ... Anti-Americanism, often Anti-American sentiment, is defined as being opposed or hostile to the United States of America, its people, its principles, or its policies. ... Capital punishment is the legal process which ends the life of a felon. ... The introduction to this article provides insufficient context for those unfamiliar with the subject matter. ... Detroit police inspecting equipment found in a clandestine underground brewery during the prohibition era. ... The Energy policy of the United States is determined by federal, state and local public entities, which address issues of energy production, distribution and consumption. ... 1970s US postage stamp block In the United States today,the organized environmental movement is represented by a wide range of organizations sometimes called non-governmental organizations or NGOs. ... Gun Politics in the United States, incorporating the political aspects of gun politics, and firearms rights, has long been among the most controversial and intractable issues in American politics. ... The human rights record of the United States of America has featured an avowed commitment to the protection of specific personal political, religious and other freedoms. ... - Fence barrier on the international bridge near McAllen, TX . ... Racism in the United States has been a major issue in America since the colonial era. ... International recognition Civil unions and domestic partnerships Recognized in some regions Unregistered co-habitation Recognition debated Civil unions legal, same-sex marriage debated See also Same-sex marriage Civil union Registered partnership Domestic partnership Timeline of same-sex marriage Listings by country This box: Same-sex marriage, also called gay... This is a list of central banks. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Gold standard Fiscal policy Spending Deficit Debt Policy-mix Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Regulation Banking Fractional-reserve Full-reserve Free banking Islamic... Basel Committee on Banking Supervision is an institution created by the central bank Governors of the Group of Ten nations (see G-10). ... For the defunct commercial bank, see Bank of Canada (commercial). ... Headquarters Coordinates , , Governor Mervyn King Central Bank of United Kingdom Currency Pound sterling ISO 4217 Code GBP Base borrowing rate 5. ... The Bank of Japan has its headquarters in this building in Tokyo. ... Headquarters Coordinates , , Established 1 January 1998 President Jean-Claude Trichet Central Bank of Austria, Belgium, France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovenia, Spain Currency Euro ISO 4217 Code EUR Reserves â‚¬43bn directly, â‚¬338bn through the Eurosystem (including gold deposits). ... The Reserve Bank of Australia came into being on 14 January 1960 to operate as Australias central bank and banknote issuing authority. ... The Reserve Bank of New Zealand is the central bank of New Zealand and is constituted under the Reserve Bank of New Zealand Act 1989. ... (Banka e ShqipÃ«risÃ« in Albanian) is the Central Bank of Albania. ... The Croatian National Bank (or HNB for Croatian Hrvatska Narodna Banka) is the central bank of the Republic of Croatia. ... Czech National Bank (official name in Czech language: Česká národní banka, abbreviated ČNB) is central bank of the Czech Republic. ... Headquarters Senior Executive Sergei Ignatiev Central Bank of Russian Federation Currency Russian ruble ISO 4217 Code RUB Base borrowing rate 10. ... National bank of Serbia (NBS) was founded in 1884. ... It has been suggested that TÃ¼rkiye Cumhuriyeti Merkez BankasÄ± be merged into this article or section. ... The Peoples Bank of China (PBC) (Simplified Chinese: ä¸å›½äººæ°‘é“¶è¡Œ; Traditional Chinese: ä¸åœ‹äººæ°‘éŠ€è¡Œ; pinyin: ZhÅngguÃ³ RÃ©nmÃn YÃnhÃ¡ng ) (not to be confused with the Bank of China or the Central Bank of China) is the central bank of the Peoples Republic of China with the power to... The RBI headquarters in Mumbai The RBI Regional Office in Mumbai The RBI heaquarters in Delhi. ... Bank Markazi, Tehran, Iran Bank Markazi Iran or Bank Markazi Jomhouri Islami Iran (Persian: Ø¨Ø§Ù†Ú© Ù…Ø±Ú©Ø²ÛŒ Ø¬Ù…Ù‡ÙˆØ±ÛŒ Ø§Ø³Ù„Ø§Ù…ÛŒ Ø§ÙŠØ±Ø§Ù†) is the Central bank of Iran. ... The Central Bank of Iraq, guarded by U.S. troops. ... Headquarters Jerusalem, Israel Governor Stanley Fischer Central Bank of Israel Currency New Israeli Shekel ISO 4217 Code ILS Base borrowing rate 3. ... Bank Indonesia is the central bank of Indonesia. ... Bank of Korea is the national central bank of the Republic of Korea (South Korea). ... The Central Bank of Kuwait was established in 1969 to offer a flexable currency system on behalf of the State of Kuwait. ... Bank Negara Malaysia (BNM) is the Malaysian central bank. ... The State Bank of Pakistan (SBP) is the central bank of Pakistan. ... The Central Bank is depicted on the 100-peso bill. ... The Central Bank of Syria (Arabic: ) is the central bank of Syria. ... The Central Bank of the Republic of China (Taiwan), formerly Central Bank of China (Traditional Chinese: ; Pinyin: ; literally Central Bank) is the central bank of the Republic of China (Taiwan). ... The Bank of Thailand (ธนาคารแห่งประเทศไทย) is the central bank of the Thailand. ... The State Bank of Vietnam (Vietnamese: ) is the central bank of Vietnam. ... Head branch of the Banco de la NaciÃ³n Argentina, the retail state-owned national bank of Argentina, in Buenos Aires city. ... The Brazilian Central Bank (in Portuguese: Banco Central do Brasil) is Brazils highest monetary authority in and the countrys governing body in finances and economics. ... The Central Bank of Chile (Spanish: ) is the central bank of Chile. ... The Banco de MÃ©xico (Spanish: Bank of Mexico), abbreviated BdeM or Banxico, is Mexicos central bank. ... The Central Reserve Bank of Peru (Spanish: ) is the Peruvian central bank. ... National Bank of Ethiopia is the Central Bank of the African country Ethiopia. ... The Bank Al-Maghrib is the central bank of the Kingdom of Morocco. ... This article is in need of improvement. ... Reserve Bank of Zimbabwe is that southern African countrys central bank. ... Expansionary monetary policy is monetary policy that seeks to increase the size of the money supply. ... Contractionary monetary policy is monetary policy that seeks to reduce the size of the money supply. ... The capital requirement is a bank regulation, which sets a framework on how banks and depository institutions must handle their capital. ... Open Market Operations are the means by which central banks control the liquidity of the national currency. ... This article lacks information on the importance of the subject matter. ... The discount window is an instrument of monetary policy (usually controlled by central banks) that allows eligible institutions to borrow money, usually on a short-term basis, to meet temporary shortages of liquidity caused by internal or external disruptions. ... Money creation is the process by which money is produced or issued. ... An interest rate is the rental price of money. ... Tax rates around the world Tax revenue as % of GDP Economic policy Monetary policy Central bank Money supply Gold standard Fiscal policy Spending Deficit Debt Policy-mix Trade policy Tariff Trade agreement Finance Financial market Financial market participants Corporate Personal Public Regulation Banking Fractional-reserve Full-reserve Free banking Islamic... Wikipedia does not have an article with this exact name. ... The World Bank logo The World Bank (the Bank) is a part of the World Bank Group (WBG), is a bank that makes loans to developing countries for development programs with the stated goal of reducing poverty. ... IMF redirects here. ... Logo of the World Bank The International Bank for Reconstruction and Development is one of the five institutions consisting the World Bank Group. ... The International Finance Corporation (IFC) promotes sustainable private sector investment in developing countries as a way to reduce poverty and improve peoples lives. ... The International Development Association (IDA) created on September 24, 1960, is the part of the World Bank that helps the worldâ€™s poorest countries. ... The Multilateral Investment Guarantee Agency (MIGA) is a member of the World Bank group. ... The International Centre for Settlement of Investment Disputes (ICSID), an institution of the World Bank group, was founded in 1966 under the Convention on the Settlement of Investment Disputes between States and Nationals of Other States. ...

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