The Federal Reserve System Essay -- Economics Economy

What the world needs now is Money Sweet Money that is not the way the song goes however that is sure enough the way our world and economic system does. Money and its importance relative to the US Government tolerate alship canal been difficult to figure out especially when it comes to sake rates. Due to our Federal modestness placement, its chairman Alan Greenspan, and his Board of Governors dedicated to seeing that our economy blossoms, those doubts have become a thing of the past, for now. The Federal Reserve System is a central lodgeing of the US Government, most commonly known as the Fed. A central bank serves as the banker to both the banking community and the government. It issues the national currency, conducts monetary policy, and plays a major role in the supervision and regulation of banks and bank holding companies. Congress created the Fed in 1913. It was designed to ensure political independency and sensitivity to the many different economic concerns. The chairman and the six other members of the Board of Governors who oversea the Fed are nominated by the President of the get together States and confirmed by the Senate. There are twelve District Reserve Banks, subsequently located in Boston, New York, Philadelphia, in Richmond, VA. In Atlanta, GA., Cleveland, OH. St. Louis and Kansas City, MO., Chicago, Minneapolis MI., Dallas, TX. And San Francisco. Each bank is responsible to a 9 member Board of Directors, which is set in a three-class system. The three classes are defined as A, B, and member banks elect C. family line A and the Board of Governors appoints B Directors and Class C. The Board of Directors is responsible for the administration of its banks and the appointment of the banks president and vice-president. This process is set from the base... ...1987.In conclusion, the job of Mr. Greenspan and the Federal Reserve is not an easy one. Whenever money is involved there is always great potential for problems. With the monetary polic y always an issue, Mr. Greenspan has to constantly come up with ways to keep our economy steady despite changes nationally and internationally. This recently became a relevant factor. At the very moment Mr. Greenspan was expected to accept his ultimate reappointment as Chair of the FED he was in the process of making it painfully clear that he was not going to allow the rapidly growing economy to foster inflationary imbalances that would undermine the economys record economic expansion. This and other important factors caused several short-term interest rate increases. This saga continues but the FED with all they have to do has steadily maintained an economy to be proud of for now.