wages for federal employess
The Board of Governors in the Federal Reserve System control the discount rate.
control state banks
The economy of a country is affected by an infinite number of factors.
Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.
The three tools of the Federal Reserve are open market operations, discount rate, and reserve requirement.
Federal Reserve Board
The Board of Governors in the Federal Reserve System control the discount rate.
control state banks
The Federal Reserve
The Federal Reserve controls the money in the United States. The Federal Reserve is a private company not associated with the government.
The economy of a country is affected by an infinite number of factors.
Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.
The Federal Reserve
The three tools of the Federal Reserve are open market operations, discount rate, and reserve requirement.
The fiscal agents of the U.S Treasury is the federal reserve system. They control and monitor the amount of money the private bank has at disposal for paying debts and lending out.
The Federal Reserve impacts local economics by impacting local loan rates. The overall movement of rates increases or decreases disposable income and the resultant spending.
Only banks can own stock in the Federal Reserve banks. However, this stock ownership does not provide the members banks with any control over what the Federal Reserve system does. Any bank that wants to become a member of the Federal Reserve Bank within their Federal Reserve District must invest a certain percentage of their capital in Federal Reserve stock. The Federal Reserve will pay dividends on this stock but banks do not become controlling shareholders as a result of these investments. The individual Federal Reserve banks are controlled (for lack of a better term) by the boards of directors of the Federal Reserve banks and by the board of governors in Washington, D.C.