I should know this answer the Federal Reserve is the only bank that is allowed to issue the money that we use today! it is the only bank that is allowed to issue te money that we use today!! == That power was specifically reserved to Congress in the Constition. Giving that power to the Fed and not auditing them and allowing them to operate in secret is an abication of that Constitutional duty.
The role that the Federal Reserve plays in regulating the banking system is that it examines and monitors banks in the banking system. It establishes regulatory ratings for capital, assets, earnings and more. It also implements regulations and issues guidelines.
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 the FED. In this way the FED controls all lending of its FED Reserve notes. They have the lever of interest control over all money, directly and indirectly through their "FED rate," which is the FED member banks borrowing rate. All borrowed/created money from the FED has an interest rate attached. To control the economy, which is based upon the cost of its money supply, all they have to do is raise or lower interest and rein out or in lending. To drive the economy up, they reduce interest rates and free up lending (supply). To create a recession, they do just the opposite. The best example of how this works is in the study of our current economic situation. During 2001 through 2004, the FED lowered interest rates and freed up lending. The mortgage industry responded with large volumes of mortgages readily sold. These mortgages were attractively offered with low payments, but were "variable" rate loans and the low payment would go up if the "rate" went up. The FED raised the rate at the base level of where all money gets its rate to exist. This occurred between mid 2004 and mid 2006, and was sufficient enough to drive up the variable rate mortgage payments of most of the nation. This movement up of the rate and the subsequent curtailing of lending to that industry caused the people with these mortgages who did not have the reserve between making the higher payments and money for food, to opt for bailing out on their mortgages. Those first affected tried to sell their homes to get their equity, but the numbers of so many selling caused a glut in the housing market bringing down values and removing any equity. Walking from what would then become over valued homes with high payments seemed to be the only option for so many. Essentially the same situation would affect the auto industry. The dominoes continue to fall until the FED lowers the interest rates and frees up lending. It should be noted that the bailing out required after this rate adjustment event, transfers the financial portfolios and assets to the FED's closest banking associates. When the rate is lowered, these portfolios will perform again and their private shareholders will flourish.
they create rules for employers and make sure that workers are safe
Federal reserve
Bank of China. (CBC)
Federal Reserve
monetary policy
The Federal Reserve Act's policy is to consider the American economy above all official decisions. Founded in December 1913, it is what balances if not drives the Federal Reserves System.
No. The US Federal Reserve is very much legal. It is an integral part of the largest economy in the world. The Federal Reserve oversees the banking operations in USA and ensures that the economy is going the best way possible.
Federal reserve Bank
Federal reserve
Bank of China. (CBC)
Federal Reserve
The Federal Reserve
It releases new money into economy
monetary policy
The Federal Reserve Act's policy is to consider the American economy above all official decisions. Founded in December 1913, it is what balances if not drives the Federal Reserves System.
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.
There are twelve Federal Reserve districts in the U.S.
Congress chartered the Federal Reserve System in 1913, which played a significant role in making the US economy more stable. The Federal Reserve System acts as the central bank of the United States and is responsible for conducting monetary policy, regulating banks, and maintaining financial stability. Through its control over interest rates and the money supply, the Federal Reserve is able to influence economic activity, stabilize prices, and promote full employment.