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Who controls the Federal Reserve?

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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."

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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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What are business cycles and what role do the Federal Reserve and Federal Government have in trying to control them?

Answer It is very important that you understand that theFederal Reserve is not a government institution. It does not takeits orders from the federal government. Yes, they put their hand inand try to change the course of the U.S. Economy, but you have toask yourself, Who are they? What are they try ( Full Answer )

What does the Federal Reserve do to fight inflation?

If inflation is running high, the Fed will raise interest rates,sell bonds on the open market, and raise the reserve ratio (if itcomes to that. It rarely ever does). Raising interest rates makesmoney "rare." Selling bonds decreases the reserves of banks, whichdecreases their lending capabilities (ag ( Full Answer )

What is the federal reserve?

If you mean federal reserve banks, it is an international organization created at Bretton Woods, New Jersey in 1945 for regulating the international peg system and the LLB (lower level banks). The International Federal Reserve (IFR) answers to the United Nations that holds the bankruptcy note on the ( Full Answer )

What does federal reserve do?

Everything. They control the flow of money in the economy of the United States. They also control in the discount rate on federal funds. That rate indirectly affects the federal funds rate, which is the rate at which the banks can get money themselves. So that rate indirectly affects the interest ra ( Full Answer )

Who does the federal reserve answer to?

The members of the Federal Reserve Board of Governors are appointed by the President of the United States with confirmation by the Senate. They cannot ordinarily be removed from their 14-year staggered terms of office.. The President of the United States, through the Secretary of the Treasury, regu ( Full Answer )

What is the Federal Reserve Chairman's Salary?

Chairman's annual salary is $191,300. The annual salary of the other Board members (including the Vice Chairman) is $172,200 This though does not include the money received in bonus checks from the major financial firms in the United States. Examples include Goldman Sachs, JP Morgan, and AIG.

What is a Federal Reserve?

The Federal Reserve is the central bank of the United States. Congress created the Federal Reserve System in 1913 to provide the nation with a safer, more flexible and more stable monetary and financial system. The Fed's three functions are to provide and maintain an effective and efficient payments ( Full Answer )

Why was the Federal Reserve system established?

It was supposedly established to stabilize the economy. If you start to look into what's really happened you will find that the money flow has actually been LESS stable since the Fed took over. The current "economic crisis" has the same source of all of the major crises in U.S. history, contractioin ( Full Answer )

What is a star on a federal reserve note?

The star on any bank note means that the bill you have in your hand etc. has been re-issued and the old bill has been destroyed. wingofeagle14@yahoo.com

Why was the federal reserve created?

Theoretically it was to to bring federal oversight to a largely unregulated banking industry, which had experienced severe booms and busts over the previous century.. In fact, the Great Depression occurred after the creation of the Federal Reserve and many economists beileve that mistakes made by t ( Full Answer )

What is 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.

Does the Federal Reserve control the US economy?

Answer . The FED controls the economy through 2 levers of control that are exclusive to it.. They are:. They have the lever to create (out of thin air) money (money supply), which is achieved through lending it to the government and FED member banks. All money in circulation is borrowed from th ( Full Answer )

Is the Federal Reserve owned by Jewish Community that controls Americans?

Each part of this question is wrong. The US Federal Reserve is not owned by Jews, neither monetarily asit is part of the US Government nor indirectly as it is directlyoverseen by the President of the United States who has never beenJewish nor is there a cabal of Jews that could own it on behalf of" ( Full Answer )

Is the federal reserve federal?

The Federal Reserve or Federal Reserve System is part of the U.S. Government and acts as the country's central bank. However, it operates independent of the President, the rest of the Executive Branch, and the Legislative Branch. The Federal Reserve gets its authority from Congress and is subject to ( Full Answer )

Federal Reserve System what percentage of stock ownership represents a controlling shareholder?

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 c ( Full Answer )

What are the duties of the Federal Reserve Bank?

Specially the Fed is responsible for: . formulating monetary policy; . acting as lender of last resort for the nation's banks and depository institutions; . facilitating the collection and clearance of checks; . regulating and supervising banks and other financial institutions; . acting as fi ( Full Answer )

Why does the Federal Reserve destroy bills?

The Federal Reserve bank is responsible for controlling all papercurrency in the US. Bills that are damaged, worn out, or otherwiseunusable have to be accounted for so they can either be replaced ortaken off the books. It's somewhat like a store that needs to keeptrack not only of the stock it sells ( Full Answer )

Does china have a federal reserve?

There isn't such an agency named federal reserve in China but they do have a central bank making monetary policies.

Explain how the federal reserve system controls the fiscal policy of the us how well do you think the federal reserve system operates?

The Federal Reserve is the central bank of the United States of America and it supervises/oversees the banking operations of all banks in USA. They are responsible for the proper functioning of all the banks and they are also the lender to the banks (The place where banks go to borrow money if they ( Full Answer )

Who are the federal reserve banks?

The Federal Reserve is the central bank of the United States ofAmerica and it supervises/oversees the banking operations of allbanks in USA. They are responsible for the proper functioning ofall the banks and they are also the lender to the banks (The placewhere banks go to borrow money if they are ( Full Answer )

The federal reserve system operates as?

The Federal Reserve is the central bank of the United States of America and it supervises/oversees the banking operations of all banks in USA. They are responsible for the proper functioning of all the banks and they are also the lender to the banks (The place where banks go to borrow money if they ( Full Answer )

Is the federal reserve a fraud?

No. Federal Reserve is not a fraud. It is the central bank of the United States of America. It oversees and supervises the banking operations of all the banks that operate within the United States. Also they are the banker to all banks within USA i.e., the bank that the banks in USA go to, to borrow ( Full Answer )

What is the importance of the federal reserve banks?

The Federal Reserve is the central bank of the United States of America and it supervises/oversees the banking operations of all banks in USA. They are responsible for the proper functioning of all the banks and they are also the lender to the banks (The place where banks go to borrow money if they ( Full Answer )

What is the federal reserve what does it do?

The Federal Reserve is the central bank of the United States of America and it supervises/oversees the banking operations of all banks in USA. They are responsible for the proper functioning of all the banks and they are also the lender to the banks (The place where banks go to borrow money if they ( Full Answer )

What are the 3 functions of the federal reserve?

Some functions of the Federal Reserve are: . Monitor and Supervise the banking operations in USA . Set and revise lending and borrowing rates in the country . Monitor and control the flow of money in the nations economy . Lay down rules to ensure that customers interests are protected and banks ( Full Answer )

What is the history of the Federal Reserve banks?

The history of banking in the United States is characterized by a tension between a reluctance to give the federal government control over monetary policy and the concept of Federalism. Alexander Hamilton secured the establishment.

What is the structure of the Federal Reserve banks?

The Federal Reserve System is composed of four parts: a board of governors, known as the Federal Reserve Board, which is an independent government agency; the Federal Open Market Committee (FOMC); the Federal Advisory.

When was the Federal Reserve Act signed?

To promote the development of a sound economy and a reliable banking system, Congress passed, and President Woodrow Wilson signed, the Federal Reserve Act on December 23, 1913.

How is the Federal Reserve System administered?

The seven-member board of governors, headquartered in Washington, D.C., is the core agency of the Fed, overseeing the entire operation of U.S. monetary policy

How does the federal reserve system control the nation's money supply?

The federal reserve decides what interest rates will be. If theydecide interest rates should be low (which they usually do when theeconomy is suffering), people will buy more and the economy willflourish. If they decide interest rates should be high (which theyusually do when inflation is high), peo ( Full Answer )

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 th ( Full Answer )

Why do you have a federal reserve?

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 safeguarde ( Full Answer )

What is the mission of the federal reserve board?

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 President of the United States an ( Full Answer )

The Federal Reserve System operates?

The Federal Reserve System operates in the United States of America. 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 c ( Full Answer )

Who is president of the federal reserve system?

Robert B Zoellick is the head of the World Bank. He is the current serving President of the World Bank. Paul Wolfowitz was the president of the world bank before him.

Should the federal reserve control the money supply?

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 safeguarde ( Full Answer )

Who is the owner of Federal Reserve Board?

The board of Governorsis supposed to oversee the 12 District Reserve banks, set national monetary policy, and supervise/regulate the US bank system in general. Ben Bernanke is chairman of the board and will be until January 31, 2014. The Board of Governors also works with the Federal Open Market Com ( Full Answer )

What can the Federal Reserve NOT do?

The Federal Reserve cannot mint coins or print currency, which arefunctions of the Treasury Department. The Treasury Department isadministered by the Secretary of the Treasury, whom is appointed bythe President.

Is the federal reserve controlled by congress?

The Federal Reserve is overseen by Ben Bernanke who is the chairman. It is not controlled by Congress but Congress does have the right to revoke their charter at any time.