The central banking system in United States will be discussed on Facts about the Federal Reserve System. People may call it the Fed or Federal Reserve. Due to a series of financial panics, which took place in 1907, Federal Reserve System was established on 23rd December 1913. Federal Reserve Act was enacted to make the institution work. The primary objective of having Federal Reserve System is to handle the economic crises with central control over the monetary system in US. Let us find out the complete information about Federal Reserve System below:
Facts about the Federal Reserve System 1: the responsibility
The responsibility and function of Federal Reserve System was spotted during the financial crises. In 1930s, United States had to face the Great Depression. In 2000s, the Great Recession, which struck the economy of most countries in the world, led into the expanded responsibility of Federal Reserve System.
Facts about the Federal Reserve System 2: the major objectives
There are three major objectives of establishing Federal Reserve System according to the Congress of United States. They are to moderate long-term interest rate, stabilize prices and improve employment.
Facts about the Federal Reserve System 3: the dual mandate
The dual mandate of Federal Reserve System refers to the role of the institution to stabilize process and increase employment.
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Facts about the Federal Reserve System 4: the expanded duties
The expanded duties of Federal Reserve System were spotted over the years. It also has the duty to provide financial services for foreign official institutions, government of United States and depository institution. The banks are regulated and supervised by the Fed.
Facts about the Federal Reserve System 5: publications
Federal Reserve System also creates some publications related to the economic and financial researches. Beige Book is one of the notable publications of The Fed.
Facts about the Federal Reserve System 6: governance
Board of Governors is appointed by the presidents. They will serve as the members of Federal Research System. The board is often called FRB or Federal Reserve Board.
Facts about the Federal Reserve System 7: the salaries
The board has seven governors as the members. Their salaries are set according to the federal government.
Facts about the Federal Reserve System 8: a unique system
The president or the members of the legislative or executive branches do not have to approve the monetary policy decision of the Fed. That is why this institution is unique.
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Facts about the Federal Reserve System 9: profit
The profit of Federal Reserve System reaches $100.2 billion in 2015.
Facts about the Federal Reserve System 10: before the Fed Era
United States had to face a number of crises before Fed was established.
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