Essay on U.s. Federal Reserve System

1846 Words Nov 29th, 2016 8 Pages
In a quick response to the changing of the guards at the White House, the Federal Reserve announced on Monday it will pour billions of dollars into the economy. They believe this will be necessary in-order to jumpstart an economy feared to be on the brink of free-falling into a nose-dive. As the Central Bank of the United States, the Federal Reserve has the dual responsibilities of price stability and maximum sustainable economic growth. With the election of Trump prompting protests of unrest across the nation, the Fed believes it would be in the country’s best interest to control the money supply by increasing the funds of the nation by purchasing Treasuries. Readers may recall it is the responsibility of the Federal Reserve System to oversee monetary policy, bank regulation, and the stability of the nation’s financial system. One other function of the Federal Reserve is to provide payment and other financial services to the US government, the public, FIs, and to foreign official institutions.

As the operating arms of the Central Bank, Reserve Banks across the country appear to be in agreement with the Fed’s decision to stimulate the economy. We must keep in mind there is a network of 12 Federal Reserve Banks and 24 branches which make up the Federal Reserve System who are under the general oversight of the Board of Governors. Seven of these board members are headquartered right in the president’s backyard, Washington D.C.. It will be interesting to see how Trump reacts…

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