The Creation of the Federal Reserve in America and the Federal Open Market Committee

The beginning of the 20th century, the US economy is faced with the weakness of the existing domestic banking system, currency no lack and elasticity of liquidity in 1907 is to fall into panic, the stock market fell nearly 50 percent from the peak of a year ago . The subsequent economic downturn and bank riots encouraged the establishment of the National Finance Council and ultimately reformed the banking and finance laws. The resulting law was enacted in 1913 and founded the Federal Reserve System.

The Federal Reserve has three major entities. Council, Federal Reserve Bank (Reserve Bank) and Federal Open Market Committee (FOMC). Council is an organ of the federal government to report to Congress, have direct accountability to parliament, provides general guidance for the system, oversees the 12 Reserve Bank of. Within the system, and the Board of Directors of the Washington, DC share a certain responsibility, its members, the Senate, with the advice and consent of the Federal Reserve Bank and its affiliated companies are appointed by the President, these are the systems in the region Configure operational existence. It is a country. The Fed is often trying to communicate with executives and Congress officials, but that decision is made on its own.

Cheong Wa Dae (or the Federal Reserve Board), the Federal Open Market Committee (FOMC), the Federal Reserve System of the Federal Reserve Bank consists of 12 Federal Reserve Bank and a number of US individual member banks, in major cities across the country What is the structure of? And various advisory boards. 0 What will the Federal Reserve Board do? The FOMC consists of seven directors and twelve regional bank governors (such as the Federal Reserve Bank of New York Governor). Four people will take turns and work one year 0

Monetary policy is set by the Federal Open Market Committee consisting of the Federal Reserve Board and Reserve Bank Governors. The Fed controls the three tools for monetary policy open market operations, discount rates and reserve requirements. The Federal Reserve Board is responsible for the discount rate and reserve requirement, and the Federal Open Market Committee is responsible for the operation of open market. The Fed has announced several announcements in the past three months, but the main change is the dollar price. In contrast to the yen announced by Federal Reserve Chairman Alan Greenspan, the US dollar against the US dollar fell in 2004. The dollar fell to 103.18 against the yen, but the yen fell to 104.19 against the yen. The dollar fell; since August 2004, the dollar has dropped by about 9% against other major currencies. The US dollar against the US dollar also reached the lowest level announced by the Federal Reserve Board on December 3, 2004.