StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

The Federal Reserve - Essay Example

Comments (0) Cite this document
Summary
The Federal Reserve Introduction The Federal Reserve is one of the chief operators of the United States financial system. Even as its function is of primary importance, most American's are less familiar with the Federal Reserve than any of the major government entities…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.3% of users find it useful
The Federal Reserve
Read TextPreview

Extract of sample "The Federal Reserve"

Download file to see previous pages History, Structure, and Function The Federal Reserve was created in 1913 by Woodrow Wilson (Wells 2010). In the late 19th and early 20th centuries credit was controlled entirely by private banks. Farmers in the mid-western regions grew increasingly upset by this fact, as they complained that oftentimes the banks would alter their credit options at times when the farmers were vulnerable. The Federal Reserve was created as a compromise, with the banks still controlling credit, but the government determining the supply of funds (Wells 2010). While the intervening years have seen significant reforms in the way the Federal Reserve operates, its underlining function has remained the same. Private banks are able to borrow from the reserve at a discounted rate, they then loan this money to borrowers at the federal funds rate, or interest rate. As the Federal Reserve raises rates, so must the banks raise the rates of loans. This system is designed to ensure fair and equitable lending throughout the country. The current chairman of the Federal Reserve, who was recently reappointed in January of 2010, and Alan Greenspan and Paul Volcker preceded him (Johnson, Web). Federal Open Markets Committee (FOMC) The Federal Open Markets Committee is a branch of the Federal Reserve that has the responsibility of regulating the United States’ open market operations. While there are a great variety of committees and functions with the Federal Reserve, this committee perhaps is the most notable as it functions to make essential decisions about interest rates and the general growth of the supply of money within the country (Chandler 1971). These are factors that directly and significantly affect major aspects of the nation’s economy. In these regards, the FOMC is the primary monetary branch of the Unites States. The committee functions in a variety of complex, but well structured ways. In these regards, the committee meets and sets short-term objectives for long-term objects within a long-term structure of economic understanding. The short-term objectives work to ensure that the federal funds rate remains constant. In addition to regulating the federal funds rate, the Federal Open Markets Committee oversees operations that the Federal Reserve has overtaken abroad. They accomplish this task in close collaboration with the United States Treasury department. In terms of meeting structure, the FOMC is required by law to meet at least four-times per year, but generally they convene eight times annually (Chandler 1971). During the meetings, open reports are presented by committee members. The committee then works toward reaching a consensus in regards to policy decisions. During this entire process the Manager of the System Open Market Account oversees the policy presentations. What I Learned & My Point of View In research the Federal Reserve there was a great amount of structural and historical information I gained, but perhaps the greatest insights I gained were in regards to how the Federal Reserve functioned during the recent economic recession. When the recession hit the Federal Reserve began the process of lowering interests rates to increase consumer spending. At this point, the Fed has virtually lowered the interest rate to 0%. In addition to ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Federal Reserve Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved de https://studentshare.org/macro-microeconomics/1390202-the-federal-reserve
(The Federal Reserve Essay Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/macro-microeconomics/1390202-the-federal-reserve.
“The Federal Reserve Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1390202-the-federal-reserve.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Federal Reserve

Current Australian Federal Election Campaign

According to the expert analysis the opposition center-left Australian Labor Party, at present led by Kevin Rudd and deputy manager Julia Gillard, will be the major contestant to the current center-right alliance government in authority since the 1996 election, at present led by the Prime Minister in addition to the great leader of the Liberal Party of Australia, and his alliance partner the Deputy Prime Minister furthermore great leader of the National Party of Australia, Mark Vaile.

No doubt, the Australian group of people newspapers are unlike their every day complements in that they do not selectively issue letters to the editor, but characteristically turn out everything they take delivery of. The small numbers of...
7 Pages(1750 words)Term Paper

Meaning and Types of Money, the Federal Reserve System

..., in every country and economy regulates its money supply. In the United States, this agency is called the Federal Reserve, or, in short, Fed. Created in 1914, the Federal Reserve is run by a seven member Board of Governors headquartered in Washington D.C. One of the governors is appointed as Chairman for a four year term by the President of the United States. Other members of the board are also appointed by the President and further confirmed by the Senate. These members are appointed for 14 year terms. The Chairman presides over board meetings and is responsible for testifying before congressional committees. The Federal Reserve System also consists of 12 regional Federal Reserve Banks with their respective board of directors...
10 Pages(2500 words)Coursework

The Federal-Aid Highway Act of 1956

Neither did this act increase the federal share to be borne of the expenses of the construction nor did it provide special funding for the project. The states had already completed about 6,500 miles of the allocated improvements when President Dwight D. Eisenhower took office in January 1953. For a period two years from 1954 to 1956, the congress had faced failure on several occasions in passing a national highway bill which would provide means to fund the interstate system. The focus was on the issue of how the expenses would be shared between the federal government and the states. Eisenhower having been in the army knew the importance of constructing well-designed roads to national security. In his address delivered in the State...
15 Pages(3750 words)Report

Organization and Functions of Federal Law Enforcement Agencies

Threats may either appear in the form of terrorism or from other intelligence groups or from the espionage. It may arise within the country, against the existing government or social systems. Though most of the federal law enforcement groups are investigative groups, they are not only focused on investigations but stand for the people. One can see that the importance of the federal agencies is growing day by day because the threats from militants and others have considerably increased. Such kinds of federal law enforcement agencies include Federal Air Marshalls, Secret Service, FBI, Untouchables, C.I.A and Federal Corrections etc. The organization and functions of these agencies vary in different fields and can be cited in the fol...
7 Pages(1750 words)Case Study

Federal Reserve Policy

... Board has been criticized for enacting policies that exacerbated the problem, or at least for failing to curtail the spread of the problem by its lack of action. The purpose of this paper is to examine the policies of the Federal Reserve Board during the period of 2006-2009 in light of the current financial crisis. The paper will find that the Federal Reserve Board policies during this period were prudent and appropriate, but failed to exert the political will necessary to address the problems that have arisen in the financial system that were due to factors that are beyond the Boards authority. By many accounts, the current financial crisis began in the housing industry and was fuelled by the twin problems on over-evaluation and high-risk...
8 Pages(2000 words)Essay

The Federal Reserve in Stabilizing the Current Economy

...cycles. A regularly recommended, and frequently pursued, answer to business-cycle reductions is expansionary monetary strategy, a raise in the cash supply. Then again, an explanation to business-cycle growths that instigates inflation is contractionary financial plan, a decline in the currency supply. When these strategies are executed, the aggregate demand curve sways that then brings on alterations in production, joblessness, and the cost of products level. References Mankiw, N. G. (2012). Principles of macroeconomics. Mason, OH: South-Western Cengage Learning. Nikolaieff, G. A. (2000). Stabilizing Americas economy. New York: H.W. Wilson Co. Wells, D. R. (2004). The Federal Reserve System: A history. Jefferson, NC [u.a.:...
8 Pages(2000 words)Coursework

The Manner in Which the Federal Government Usurps Powers That Initially Belonged to the State Governments and the Judiciary

... ……………………………………. Day/ Time………………………………… ……………………………Essay Assignment…………………….Topic………………. Outline of the Paper: I. Introduction a. Introductory statements. b. Expectations of the founders. c. Thesis Statements. II. Body Paragraph 1. a. James Madison depiction on the role of government. b. State governments as centers of power and authority. III. Body Paragraph II. a. Declaration of Independence and Commerce. b. Alexander Hamilton on the States expenditures. IV. Body Paragraph III. a. James Madison belief on States diversity. b. The policy of affirmative action. V. Counter Arguments. a. Governance meets the expectations of the founders. i. Federal government’s interference protects the dignity of mankind. ii. Declaration...
7 Pages(1750 words)Case Study

Should Same Sex Marriage Be Recognized by the Federal Government

...Should Same Sex Marriage be recognized by the Federal Government? al Affiliation While nature has it that people should be attracted to people of the same sex, there have been numerous cases of people getting attracted to people of the same sex as them. Men have reported getting attracted to fellow men and women to fellow women. The relationships between same sex individuals are known as homosexual relationships. Although same sex individuals have been secretly getting married in the past, the issue has escalated in the twenty first century as many of them continue to come out. This has resulted to some nations legalizing unions between same sex individuals. Other nations however oppose this move as immoral and disastrous. Among them...
9 Pages(2250 words)Assignment

Should the Federal Minimum Wage Be Raised

With its history traced back to 1938 when applied to the Virgin Islands and Puerto Rico, the FLSA has undergone numerous amendments to what it is today, covering the whole of the United States. It aims at helping families attain self-sufficiency, thus targeting low-paid occupations. Following amendments to its 2008 predecessor, the 2009 amendments set the federal minimum age at $7.25 per hour as documented by the United States Department of Labor, DOL (2014). Even though there are states with greater employee protection legislation, all states should adhere to both legislations. In cases where the minimum wage set by the federal authorities differs from that set by the state authorities, employees are entitled to the higher minimu...
8 Pages(2000 words)Assignment

Moseley Bog Nature Reserve

...Moseley Bog Nature Reserve Table of Contents Table of Contents 2 Introduction 3 Overview of the Site 3 Aims and Objectives of this Report 3 Literature Review 4 (Source: The Wildlife Trust for Birmingham and the Black Country Limited6, 2014) 7 Critical Evaluation 8 Conclusion 10 References 11 Introduction Overview of the Site Moseley Bog nature reserve is situated in the Moseley region of Birmingham, England. Moseley Bog is identified to have burnt mounds near the banks of the Coldbath Brook. The burnt mounds of old woodland are developed in a stream valley of a mill pool. The woodland has diverse animals as well as plants species. Apart from this, ‘abundant flowering plants’, ‘wetland vegetation with reeds’ and ‘bog mosses...
8 Pages(2000 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The Federal Reserve for FREE!

Contact Us