What is the goal of the federal reserve system?

Answer 1

The federal reserve system's main goal is to control the money supply. It does this by changing the reserves of the banks through three methods.

1. Raising or lowering the reserve requirements -Reserve requirement is the money that the FED requires a bank must keep in its inventory; this money cannot be loaned out or invested. Lowering the reserve requirement means that banks have more reserves available and can issue out more loans and make more investments. This results in in an increase in the money supply. Raising the reserve requirement would have an opposite effect and decrease the money supply.

2. Raising or lowering the discount rate - Discount rate is the interest rate charged when banks loan from the FED. Lowering the discount rate allows banks to borrow more, which increases bank reserves and allows banks to loan out more money and make more investments. Money supply increases. The opposite occurs when discount rate is raised.

3. Buying or selling government securities (such as bonds) - When the FED buys government securities, it increases bank reserves because it is making a purchase/putting money into the system. Money supply increases. When the FED sells government securities, it decreases bank reserves because money is being taken out of the system to purchase the government securities. Money supply decreases.

Answer 2

To implement a fractional reserve banking system, to issue currency (NOT "money"), and to attempt (and almost always fail) to "control" an enormous, world-leading economy for first and foremost the power elite, and then, if possible, the general population. In other words, an entirely unnecessary and unconstitutional stealing of the American people's right (by God or by natural law) to have a sound monetary system backed by something real (e.g. gold, silver, or commodities).

To simplify even further, a Gang of Very Sophisticated Thieves and Intrusive Control Freaks who do not trust the Free Market.

Answer 3

The Federal reserve bank has one goal . . . . . to suck all the money out of the middle class and pass it to the "upper class" aka themselves and their boys....