The Federal reserve system ([]), often also Federal reserve or Fed mentioned, is the Zentralbank-System of the United States. It consists twelve regional Federal reserve of the board OF Governors, bank and a multiplicity of member banks and other institutions.

The Federal reserve system was created 1913 by the congress of the United States, in order to establish "„a Zentralbanksystem that one arranged in such a way, the national financial system both flexibility and strength to add "“English "“established A new cent ral bank designed tons of ADDs both flexibility and strength ton the nation's financial system"”, Federal reserve act OF 1913. The Federal law planned a system from several district banks and a board of directors. Banks, which acted on national level, had to follow the Federal reserve system, other banks were released the participation. Owners of the district banks are received the respective member banks, which are involved by their membership on the one hand in the risk of the district banks, on the other hand in addition, annual dividend payments. Most important committee of the Fed is the Federal open Market Committee, which operates the money and monetary policy of the United States. Its chairman was until 31 January 2006 Alan Greenspan, on 1 February 2006 followed him Ben Bernanke.

Tasks and responsibilities

The major tasks of the Federal reserve are:

• Monitoring and adjustment of the banking
• Conversion of the monetary policy by open market business, adjustment of the rate of discount and change of the minimum reserve
• Maintenance of a functioning Zahlungssystems
• Monitoring of the money supply those is daily manufactured and destroyed (in co-operation with the United States Mint and the office for coinage and pressure)

Among the further tasks rank:

• Economic research
• Economic training

Organization

Structure of the Federal reserve system

The Federal reserve system consists of twelve bank districts, which possess a Federal reserve bank in each case. These are:

• Federal reserve bank Boston
• Federal reserve bank New York
• Federal reserve bank Philadelphia
• Federal reserve bank Cleveland
• Federal reserve bank Richmond
• Federal reserve bank Atlanta
• Federal reserve bank Chicago
• Federal reserve bank pc. Louis
• Federal reserve bank Minneapolis
• Federal reserve bank Kansas town center
• Federal reserve bank Dallas
• Federal reserve bank San Francisco

These banks deny their financial capital from the financial capital of their private member banks. Here it acts however not over at the market acted portions - rather banks are legally obligated starting from a certain size to be member in the Fed in the USA. The largest federal reserve bank is in New York, which operates foreign businesses also as only of the federal reserve banks.

Committees of the Federal reserve system

Executive committee of the Fed is the boards OF Governors OF the Federal reserve system (Federal Bank advice) in Washington D.C. It consists of seven by the president of the USA designated and with agreement of the senate for 14 years selected members. The members of the advice cannot be red-elect.

Task of the board is the conversion of the decisions, which are decided by the FOMC (see below). Apart from its politico-economic authority the advice appoints also ever three directors for the twelve Federal reserve bank. The remaining six directors of each Federal reserve bank are appointed by the member banks.

The politicoly-economic most important committee of the Fed is the Federal open Market Committee (FOMC). Its tasks exist among other things in the execution of open market business. Thus the committee decides whether the US key interest (the target rate of the Federal of find rate) is changed. Beyond that the committee can decide US Dollar also on interferences into the foreign exchange market and thus the rate of exchange to other currencies affect. For this reason meetings of the FOMC and statements of its members of the financial markets are noticed as extremely important politico-economic decisions.

The FOMC Governors the twelve chairmen of the regional Federal reserve belong bank beside the seven members board of the OF, from which however only five are enfranchised. For this purpose eleven of the twelve banks are combined after geographical aspects into four groups, which place a member of the FOMC in each case. Within the groups a rotation takes place between the individual Federal reserve bank. For historical reasons the Federal reserve bank OF New York does not participate in this rotation procedure - she has a constant right to vote in the FOMC. The committee meets eight to times per year.

History

1790 were created on initiative of the US Minister of Finance at that time Alexander Hamilton the "“roofridge National Bank OF the United States"”. The Konzessionsvertrag of this first central bank of the USA ran out 1811 and was not extended. 1836 were rejected the distribution of the concession by president Andrew Jackson. 1863 were again given the concession.

Around 1900 the bases for the establishment of a private issuing bank in the USA were created. Jacob ship let the New Yorker Chamber of Commerce know with a speech 1907: "” If we a central bank with sufficient control of the credit procurement do not get, then this country will experience the sharpest and most profound money panic of its history. "“

The private money and credit system were created in the USA on 23 December 1913 by signing of a congress resolution (Federal reserve act) by president Woodrow Wilson. The suggestion on the establishment of a central bank after European model came from Paul Moritz being castle, partner of the banking house being castle in Hamburg and Kuhn, Loeb & Co. in New York. It was appointed also 1914 to suggestion president Wilsons into the advice of the American central bank (Federal reserve board) and appointed its vice-president.

With the currency control law (Monetary control act), which in June 1981 into force stepped, the Federal reserve bank among other things the power one gave to acquire not only US national debt titles but also national debt titles of other countries.

Literature

• The Federal reserve act. (English) (Robert Latham Owen), New York: Century CO., 1919.
• Out OF Debt, Out OF Danger. (English) (Jerry Voorhis), Public Action Committee, 1943, renewed edition 1991
• Money Creators. (English) (Gertrude Coogan), Chicago: Bound Money press, Inc., 1935

Related links

• Web page of the Fed
• www.leitzinsen.info - the world of the key interests in the overview (German)
• www.apfn.org/apfn/reserve.htm - Secrets OF the Federal reserve

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