The Minneapolis Fed explains how the twelve Federal Reserve presidents in each district are selected and the process behind it. Eleven of the country’s twelve Federal Reserve districts have an HBCU or PBI located in them. Their influence over local economies monetary policy is something all HBCU citizens should be cognizant of.
“In other words, just because we removed the word “patient” from our statement does not mean we are going to be impatient.” – Chairwoman Janet Yellen
One of the key points that Chairwoman Yellen points to is that despite a 2.5 percent growth of GDP in 2014 there appears to be a slowing of growth to start 2015. A sign that while the stock market has been robust the real economy has struggled to pick up as signaled by sluggish consumer spending indicators. Housing and export growth also appears to show rising weakness ahead. Estimates for unemployment over the next two years by the FOMC are expected to come in at 5.0 to 5.2 percent range.
Chairwoman Yellen also appeared to confirm what most economist are predicting in terms of an interest rate hike coming in June if conditions at a minimum hold. For the full statement and the Q&A that follows click on the video below.
The FOMC (Federal Open Market Committee) held its last meeting of 2014 on December 17, 2014. As has become customary starting under the previous Federal Reserve Chairman Ben Bernanke, a press conference is held thereafter giving the public and media an opportunity to ask questions of the sitting chair about current and/or future strategy and policy.
A few key points that were touched on in the press conference were falling oil prices, three committee member dissent of current policy direction, Russia’s impact on the global economy, and an emphasis that every meeting is a “live” meeting where the committee could alter their strategic policy.
Just 14 things that you may or may not know about the Federal Reserve Bank that were shared by FederalReserveEducation.org’s outreach to teach citizens more and more about how and what the Federal Reserve role actually is in their day to day lives. Our Editor-In-Chief William A. Foster, IV got 10 out of 15 correct on their quiz. Looks like he may need to go back to business school and take a few refresher courses.
The profit (revenues in excess of costs) of the Federal Reserve is given to the U.S. Treasury.
Managing the federal deficit is NOT a function of the Federal Reserve.
The Board of Governors, the governing body of the Federal Reserve System, is set up to consist of 7 members.
Congress is the organization that established the Federal Reserve System.
38 percent of commercial banks in the U.S. are members of the Federal Reserve System.
12 districts make up the Federal Reserve System.
The San Francisco Federal Reserve district serves the largest number of states.
Member banks are NOT required to hold stock in Reserve Banks.
Federal Reserve head offices each have a 9 member board of directors.
Federal Reserve Bank employees are NOT considered to be government employees.
State Advisory Council is NOT an advisory council to the Federal Reserve Board of Governors.
Each Federal Reserve District president reports to the board of directors.
The Federal Reserve is the 3rd attempt at our nation’s central bank.
The Federal Reserve’s primary source of income is interest on government securities.
The Federal Reserve System is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.
Today, the Federal Reserve’s duties fall into four general areas:
conducting the nation’s monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
supervising and regulating banking institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers
maintaining the stability of the financial system and containing systemic risk that may arise in financial markets
providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation’s payments system