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On December 23, 1913, the Federal Reserve System, which serves as the nation's central bank, was created by an act of Congress. The System consists of a seven member Board of Governors with headquarters in Washington, D.C., and twelve Reserve Banks located in major cities throughout the United States.

As stated on the Federal Reserve's website, "The Federal Reserve System is not owned by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects."

It goes on to say that "As the nation's central bank," it derives its authority from the U.S. Congress, but it is considered an independent central bank because its decisions do not have to be ratified by anyone in the legislative or executive branches of government, nor does it receive funding appropriated by Congress. It is; however,

"subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute" and it "must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

Another View:

Although the Federal Reserve Bank states it is not private on their website, they operate under terms that no other "government institution" operates by. For example, they are not required to submit financial information and are not subject to IRS audits, nor do they publish the amount of money they print to the American public. Given these terms, it's hard to believe the Federal Reserve is a government institution providing a genuine service to the American people. A commonly held belief is that The FED is a privately owned central bank. Central banks are supposed to implement a country's fiscal policies. They monitor commercial banks to ensure that they maintain sufficient assets, like cash, so as to remain solvent and stable. Central banks also do business, such as currency exchanges and gold transactions, with other central banks. In theory, a central bank should be good for a country, and they might be if it wasn't for the fact that they are not owned or controlled by the government of the country they are serving. Private central banks, including the United States FED, operate for profit.

In addition to being part of international corporate banking systems that are rooted in Europe and control a majority of the world's wealth, they operate through a fractional reserve system. This system allows these central banks to lend money at interest to the governments of the world, creating debt that can never be repaid. Many people in the U.S. believe that the operation of the Federal Reserve goes against the Constitution of the United States because it operates independently of the government, and there are no regular audits, oversight capacity, or control exercised by any elected officials. Under the Constitution all power and rights are ultimately vested in the citizens of the United States. The banks that make up the Federal Reserve are controlled by corporations and families who have controlled international banking since before the Constitution was created.

More Information and opinions:

  • There have been three central banks in the nation's history. What they all have in common is the practice known as "fractional banking."
  • This website shows who owns the FED: http://www.save-a patriot.org/files/view/whofed.html. On the list are: The Rothschilds of London and Berlin; Lazard Brothers of Paris; Israel Moses Seif of Italy; Kuhn, Loeb and Warburg of Germany; and the Lehman Brothers, Goldman Sachs, and the Rockefeller families of New York.
  • The FED is the only for-profit corporation in America that is exempt from both federal and state taxes. The FED takes in about one trillion dollars per year tax-free.
  • The Supreme Court has ruled that the Federal Reserve is independent of the government and privately owned.
  • It is historic fact that the plan for the Federal Reserve was created by banking interests in great secrecy at Jekyl Island in 1910. J.P. Morgan and Paul Warburg were the primary architects. Political impetus for this action came from the Money Panic 1907. It is also historic fact that Thomas Jefferson opposed Alexander Hamilton who wanted do create a national bank backed by the Rothschild banking family. The book "Secrets of the Federal Reserve" is available. It has been transposed to HTML and cross linked by the Modern History Project. These links make it easier to see the links between the member banks that own the Federal Reserve and private banking interests.
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โˆ™ 2015-02-09 15:56:49
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Q: Who controls the Federal Reserve?
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Related questions

The Federal Reserve System controls the size of the?

Money supply


What is the institution that controls interest rates in the US?

Federal Reserve


Do you control your money when you declare bankruptcy?

The Federal Reserve controls the money in the United States. The Federal Reserve is a private company not associated with the government.


What entity controls the money supply in the US?

The Federal Reserve (the FED)


Who controls how much money is produced?

Federal Reserve, simply put.


Who control the federal reserve?

The Federal Reserve is the central banking system of the United States. It was created in the year 1913. Ben Bernanke is the chairman of the Federal Reserve. He has been the chairman since 2006. Before him, Alan Greenspan was the chairman of the federal reserve. The United States government and the President of the USA controls the Federal Reserve


Which branch controls currency in the US?

The specific government body that controls US currency is Federal Reserve System


The Federal Reserve banks controls the money supply by what?

The Federal Reserve uses three tools to control the money supply. They are:Changes in the reserve requirements.Changes in the discount rate.Open market operations.


Who controls how much money is in circulation.?

I'm pretty sure it's the Federal Reserve


How does the federal reserve control the money supply?

The federal reserve controls money supply by controlling what budgets do and don't get approved. They also decide who is allowed to receive extra money.


Who controls the supply of money in the US today?

the federal reserve of course now do the happy dance


How did Hitler and his Nazi party control Germany?

Same way the Federal Reserve controls America?


Who founded the federal reserve?

who founded the federal reserve? who founded the federal reserve?


When and how was the Federal Reserve created?

The Federal Reserve was created in 1913 when Congress passed the Federal Reserve Act.


What was the singular achievement of the Federal Reserve Act?

Establishing the Federal Reserve was the singular achievement of the Federal Reserve Act.


When was the federal reserve established?

The Federal Reserve was created in 1913


How many federal reserve districts did the Federal Reserve Act divide the US into?

There are twelve Federal Reserve districts in the U.S.


What law established the Federal Reserve?

The Federal Reserve Act of 1913


What is the federal reserve and why is it important?

The Federal Reserve is part of the US Treasury.


Where was the federal reserve formed?

Who or what group of individuals formed the Federal Reserve


What is federal reserve system for?

what is one of examiner jobs at the federal reserve


What was the purpose of the federal reserve act?

The purpose of the Federal Reserve Act was to create a central banking system and to create the Federal Reserve System. It granted the legal authority to the Federal Reserve Bank to issue Federal Reserve Notes and Federal Reserve Bank Notes as legal tender for the United States.


Why does the Federal Reserve Bank of New York play a special role within the Federal Reserve System?

Why does the Federal Reserve Bank of New York play a special role within the Federal Reserve System?


Who borrows money from federal reserve banks?

All member banks of the Federal Reserve in USA can and do borrow money from the federal reserve. The Federal Reserve is the banker of banks to whom the banks go when they need money.


What has been the recent fluctuation span of the Fed Funds rate?

The Federal Reserve controls the interest rate at which federal banks lend money hence low fluctuations can be noticed