2. The Federal Reserve

3. The Federal Reserve The Central Bank of the United States

4. The Federal Reserve Main job: to regulate or “control” the size of the supply of money, the total amount of money in circulation http://www.youtube.com/watch?v=rUzrMfDKI-E (2:30 into the clip see making of money)

5. Q: Who is the current Chairman of the Federal Reserve?

6. Oh! Oh! That’s me! Ben Bernanke! http://video.aol.com/video-detail/cnbccom-fed- chairman-ben-bernanke-testimony/3007286962 (testifying before House committee) (16:27) http://video.aol.com/video-detail/ben- bernanke-holds-qandampa- session/3681234450http://video.aol.com/video-detail/ben- bernanke-holds-qandampa- session/3681234450 (good Q & A session) (20:44) http://www.youtube.com/watch?v=usiFU3FEv9w (Ron Paul confronts Bernanke) (3:32)

7. How & Why is the Fed independent? Congress wanted Fed to make best decisions possible, even if contrary to public opinion Governors serve for year term Funding: no money from Congress; operating expenses paid from interest on the assets it holds I’m indepen - dent

8. Federal Reserve Structure Meets 8 times a year to vote on Monetary Policy Federal Reserve Board of Governors (7 members) Ben Bernanke Chairman Federal Open Market Committee= 7 Governors + 5 District Bank Presidents—meets 8 times per year 12 District Federal Reserve Banks Boston San Francisco New York Atlanta Chicago Dallas, etc. Member Banks All national banks Some state banks Federal Funds Rate = Interest rate that the 12 District banks charge Each other on overnight loans Discount Rate=Interest rate that the Fed lends money directly to District Banks (rarely used) SF Fed Building—Market Street

9. Hi! Remember me, Ben Bernanke!

10. Now that you know what our Chairman looks like, it’s time to play a short round of…

11. Can YOU Spot Him?

12. Great Job!

15. There he is!

16. BEN BERNANKE?

18. Ben Bernanke is too busy dealing with the economic crisis; he doesn’t have time to go to the carnival!

19. Video Ben Bernanke Interview on 60 Minutes 3/22/09 --during the segment write down three observations, opinions and/or interesting facts learned http://www.cbsnews.com/stories/2009/03/12/60minutes/main4862191.shtml 60 Minutes—Ben Bernanke Interview Part I (13:24) 60 Minutes—Ben Bernanke Interview Part II (13:14)