1. The Federal Reserve System
“The Fed” – the central Bank of the United States

2. 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.

3. 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

4. Board of Governors FOMC Advisory Councils
12 District Banks
Branch Banks
Advisory Councils
Commercial Banks
Federal Reserve Districts

5. Federal Reserve Districts http://www.federalreserveonline.org/
Atlanta Fed
FED Education

6. District Banks

7. 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

8. 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

9. 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

10. 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

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

12. 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

13. 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?