The Federal Reserve System was designed to give it a broad perspective on the economy and on economic activity in all parts of the nation.
A federal system, independent governmental agency composed of:
Board of Governors--in Washington, D.C.
12 Regional Federal Reserve Banks
Federal Reserve Banks were established by the Congress as the operating arms of the nation's central banking system. Many of the services provided to depository institutions and the federal government by this network of Reserve Banks are similar to services provided by commercial banks and thrift institutions to business customers and individuals. However, the Federal Reserve Banks do not provide banking services, including accounts, to individuals
Supervise and regulate certain financial institutions and activities;
Provide banking services to depository institutions and to the federal government;
Ensuring consumers receive adequate information and fair treatment in their business with the banking system.
Seven Members of the Board of Governors
Nominated by the President and confirmed by the Senate. By law:
Appointments must yield a "fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country"
No two Governors may come from the same Federal Reserve District.
A full term is fourteen years.
One term begins every two years, on February 1 of even-numbered years.
A member who serves a full term may not be reappointed.
A member who completes an unexpired portion of a term may be reappointed.
All terms end on their statutory date regardless of the date on which the member is sworn into office
Board Member Assignments / Board Committees
Committee on Board Affairs
Committee on Consumer and Community Affairs
Committee on Economic and Financial Monitoring and Research
Committee on Financial Stability
Committee on Federal Reserve Bank Affairs
Committee on Bank Supervision
Subcommittee on Smaller Regional and Community Banking
Committee on Payments, Clearing, and Settlement
Federal Reserve Districts
Federal Open Market Committee (FOMC)
The Federal Open Market Committee (FOMC) is the monetary policymaking body. The FOMC is composed of 12 members
The 7 members of the Board of Governors &
The 5 of the 12 Reserve Bank presidents.
The Board Chair serves as the Chair of the FOMC;
The president of the Federal Reserve Bank of New York is a permanent member of the Committee and serves as the Vice Chairman of the Committee.
The presidents of the other Reserve Banks fill the remaining four voting positions on the FOMC on a rotating basis.
All of the Reserve Bank presidents, including those who are not voting members, attend FOMC meetings, participate in the discussions, and contribute to the assessment of the economy and policy options.
The FOMC oversees open market operations, which is the main tool used by the Federal Reserve to influence money market conditions and the growth of money and credit. The FOMC also authorizes currency swaps and large-scale asset purchases.
Provide accounts to Depository Institutions
Banks, thrifts, and credit unions
In which those institutions hold reserve balances,
Make loans to depository institutions,
Move currency and coin into and out of circulation,
Collect and process millions of checks and other payments each day,
Provide checking accounts and other services for the Treasury,
Issue and redeem government securities,
Act in other ways as fiscal agent for the U.S. government;
Supervise and examine all bank holding companies and commercial banks for safety and soundness; and
Participate in the setting of monetary policy.
Eight times a year, each Federal Reserve Bank gathers anecdotal information on current economic conditions in its District and summarizes their activities.