The U.S. Federal Reserve

U.S. banking system was formed under the influence of the Law on the Federal Reserve, many times refined, and the Act on depository institutions deregulation and monetary control (DIDMCA), adopted in 1980, the core of the monetary and banking system of the United States is the Board of Governors of the Federal Reserve System. Seven members of the Governing Council of the Federal Reserve (the Soviets) are appointed by U.S. President with the approval of Congress. For them set longer term - 14 years, provided that is replaced every two years a member of the Board. This is done in order to enable the Council to act consistently, to have qualified members to be independent and enjoy autonomy. Destination, rather than election of the Board allows us to separate monetary policy from the policy of the ruling party. Fed Board of Governors is responsible for overall management and supervision of the work of the monetary and banking systems of the country. It is recognized that the Chairman of the Board - the most influential leader of the central bank in the world. Effectiveness of the measures the Council, which must conform to the public interest and contribute to overall economic welfare, is achieved using a technique controls the money supply. In laying the foundation of the banking policy of the Board is assisted by two leaders of major organs. First - Open Market Committee - composed of 7 members and 5 presidents of Federal Reserve Banks, and he determines the policy of the Federal Reserve System in the areas of procurement and sales of government bonds on the open market. These operations are the most effective way of allowing the governing monetary authorities to influence the money supply. The second - the Federal Advisory Council - composed of 12 prominent leaders of the commercial banks, elected annually, one from each of the 12 Federal Reserve Banks. Periodically, the Federal Advisory Council meets with the Board of Governors of the Federal Reserve and shares his views on banking policy. However, the Federal Advisory Council - a purely advisory body, he has no authority in the formation of banking policy. Topic: Banking systems | Tags: world banking system