What is the Federal Reserve? What are the basic functions of the Federal Reserve?
2023-06-05
Summary:
The Federal Reserve is the central banking system of the United States. Learn about its basic functions and how it impacts the economy.
What is the Federal Reserve?
The full English name of the Fed is the Federal Reserve System, while in Chinese it is called the Federal Reserve System, the United States Federal Reserve System, or the Federal Reserve.
The Federal Reserve (Fed) is the central bank of the United States, consisting of three major institutions and is the world's most influential financial institution responsible for maintaining the security and stability of US monetary policy and financial system.
The basic functions of the Federal Reserve are as follows:
1. Implement relevant monetary policy through three main means: open market operations, setting bank reserve ratios, and approving discount rates required by various Federal Reserve banks.
2. Supervise and guide the activities of various Federal Reserve banks.
3. Supervise domestic banks in the United States, as well as the activities of member banks overseas and foreign banks in the United States.
4. Approve the budgets and expenses of each Federal Reserve Bank.
5. Appoint three of the nine directors of each Federal Reserve Bank.
6. Approve the candidates nominated by the board of directors of each Federal Reserve Bank for the appointment of the President of the Reserve Bank.
7. Exercise the rights as a national payment system and be responsible for the implementation of relevant laws to protect consumer credit.
According to the provisions of the Humphrey Hawkins Act, a report on the implementation of economic and monetary policy (similar to a semi annual report) shall be submitted to Congress on February 20th and July 20th each year.
9. Publish detailed statistical information on the operation of the Federal Reserve System and the national economy to the public through various publications, such as the monthly Federal Reserve System Bulletin.
10. At the beginning of each year, submit the previous year's annual report (subject to audit by a public accounting firm) and budget report (subject to audit by the United States General Audit Office) to Congress.
In addition, the chairman of the committee is required to hold regular meetings with the President of the United States and the Secretary of the Treasury, report on relevant situations in a timely manner, and fulfill their responsibilities in international affairs.
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