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CENTRAL BANK OF UNITED STATES OF AMERICA (U.S.A.

) (FEDERAL RESERVE SYSTEM)


The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central banking system of
the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a
series of financial panics, particularly a severe panic in 1907.
A Federal Reserve Bank is a regional bank of the Federal Reserve System, the central banking system of the United States.
There are twelve in total, one for each of the twelve Federal Reserve Districts that were created by the Federal Reserve Act of
1913. The banks are jointly responsible for implementing the monetary policy set forth by the Federal Open Market Committee.
The Federal Open Market Committee (FOMC) consists of 12 members, seven from the Board of Governors and 5 of the regional
Federal Reserve Bank presidents. The FOMC oversees 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.
VISION
We serve the public interest by fostering a strong economy and promoting financial stability. We accomplish this with talented
and innovative people working within a collaborative and inclusive culture.
OBJECTIVES

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maximum employment
stable prices
moderate long-term interest rates

FUNCTIONS
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To address the problem of banking panics


To serve as the central bank for the United States
To strike a balance between private interests of banks and the centralized responsibility of government
To supervise and regulate banking institutions
To protect the credit rights of consumers
To manage the nation's money supply through monetary policy to achieve the sometimes-conflicting goals of
Maximum employment
Stable prices, including prevention of either inflation or deflation
moderate long-term interest rates
To maintain the stability of the financial system and contain systemic risk in financial markets
To provide financial services to depository institutions, the U.S. government, and foreign official institutions, including playing
a major role in operating the nation's payments system
12. To facilitate the exchange of payments among regions
13. To respond to local liquidity needs
14. To strengthen U.S. standing in the world economy
RESERVES are balances held by depository institutions on deposit at the Federal Reserve Banks and the cash they hold in their vaults.

MISSION
The fundamental mission of the Federal Reserve System is to foster the stability, integrity and efficiency of the nation's monetary, financial
and payment systems in order to promote optimal macroeconomic performance.
Today, the Federal Reserve's duties fall into four general areas:
Conducting the nation's monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum
employment, stable prices, and moderate long-term interest rates
Supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to
protect the credit rights of consumers
Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets

Providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role
in operating the nation's payments system.

MONETARY BOARD
Monetary policy is made by the Federal Open Market Committee (FOMC), which consists of the members of the Board of Governors of
the Federal Reserve System and five Reserve Bank presidents. The FOMC holds eight regularly scheduled meetings during the year, and
other meetings as needed.
The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the
Senate.
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A full term is fourteen years.


One term begins every two 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.
The Board of Governors of the Federal Reserve System maintains that the banks are not operated to generate profits.
The Chairman and the Vice Chairman of the Board are named by the President from among the members and are confirmed by the
Senate.
They serve a term of four years. A member's term on the Board is not affected by his or her status as Chairman or Vice Chairman.

2015 Committee Members


Janet L. Yellen, Board of Governors, Chair
William C. Dudley, New York, Vice Chairman
Lael Brainard, Board of Governors
Charles L. Evans, Chicago
Stanley Fischer, Board of Governors
Jeffrey M. Lacker, Richmond
Dennis P. Lockhart, Atlanta
Jerome H. Powell, Board of Governors
Daniel K. Tarullo, Board of Governors
John C. Williams, San Francisco
Alternate Members
James Bullard, St. Louis
Esther L. George, Kansas City
Loretta J. Mester, Cleveland
Eric Rosengren, Boston
Michael Strine, First Vice President, New York