The Federal Reserve System “The Fed” – the central Bank of the United States http://www.time.com/time/video/player/0,32068,57544286001_1948059,00.html

GPS Correlation SSEMA2 The student will explain the role and functions of the Federal Reserve System. a. Describe the organization of the Federal Reserve System.

Structure and Organization Board of Governors 7 members appointed by President – 14 year term Participates Advises Federal Open Market Committee 7 Board members – 5 District Bank Presidents Federal Advisory Committees 12 District Banks Boston, New York City, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, San Francisco

Board of Governors FOMC Advisory Councils 12 District Banks Branch Banks Advisory Councils Commercial Banks Federal Reserve Districts http://www.federalreserveonline.org/

Federal Reserve Districts http://www.federalreserveonline.org/ Atlanta Fed www.frbatlanta.org/atlantafed/visitors_center/tour/layout.cfm FED Education http://www.federalreserveeducation.org/about-the-fed/structure-and-functions/districts/

District Banks

Board of Governors Function – supervises and regulates the FED Members of the Board Janet Yellen, Chairman Stanley Fischer, Vice Chairman Daniel Tarullo Jerome Powell Lael Brainard

Functions of FOMC and Advisory Committees Federal Advisory Committees – Keep the Fed informed on economic conditions in each district, on financial institutions, and issues related to consumer loans Federal Open Market Committee – Fed’s major policy making group. Make decisions that affect the economy as a whole by manipulating the money supply

Federal Open Market Committee (FOMC) Function – decide monetary policy Janet Louise Yellen, Board of Governors, Chairman William C. Dudley, New York, Vice Chairman Stanley Fischer, Board of Governors Lael Brainard, Board of Governors Jeremy C. Stein, Board of Governors Daniel K. Tarullo, Board of Governors Richard W. Fisher, Dallas Narayana Kocherlakota, Minneapolis Loretta J. Mester, Cleveland Charles I. Plosser, Philadelphia

Federal Advisory Committees Consumer Advisory Council - advises the Board on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters in the area of consumer financial services. Federal Advisory Council - composed of twelve representatives of the banking industry, consults with and advises the Board on all matters within the Board's jurisdiction Thrift Institutions Advisory Council - The twelve members are representatives from savings and loan institutions, mutual savings banks, and credit unions

Responsibilities of the FED P. 232 – Green JA Book – List and briefly explain each responsibility. 1. 2. 3. 4. 5. 6.

Responsibilities of the FED 1.Supplies economy with cash 2. Processes checks and electronic transfers 3. Holds reserves for depository institutions (banks) 4. Banker for Federal Gov’t 5. Supervises and regulates banks 6. Implements Monetary Policy – most important

Ben Bernanke Interview Watch the video link and answer the questions. 1. Who is the most powerful man that makes decisions for America’s Economy? 2. What is his job? 3. What does the FED give businesses? 4. What did he do to launch a dozen rescue programs? Give two examples of a rescue program. 5. What was Bernanke’s specialty in college? 6. How does he defend the bailing out of the banks during the most recent recession? http://www.youtube.com/watch?v=odPfHY4ekHA