In 1907, an economic crisis arose which made people want to do bank runs and claim their deposits. The Fed is made up of 12 banks.
Give me my deposit.
Woodrow Wilson passed an act in 1913 to make The Fed.
Give me The Fed.
The Fed's job is to promote sustainable growth, high levels of employment, and maintain stable prices. They are the gate keeper of the US economy.
The F.O.M.C. is controlled by the vice chairman of Board of Gov, and the chairman of the board of gov. The FOMC is federal open market committee. The FOMC controlls The Fed.
I appoint thee.
The chairman and vice chairman are appointed by the President of the US.
Monetary policy is the process by which the monetary authority of a country controls either the cost of very short-term borrowing or the monetary base, to ensure price stability and general trust in the currency.
If the Fed buys back issued securities (such as Treasury bills) from large banks and securities dealers, it increases the money supply in the hands of the public. Conversely, the money supply decreases when the Fed sells a security.
Central banks have three main monetary policy tools: open market operations, the discount rate, and the reserve requirement.