The Federal Reserve System Essay

1428 words - 6 pages

Federal Reserve 5th District - PAGE 1 -
The Federal Reserve SystemECONYour UniversityThe Federal Reserve BankThe fifth of twelve satellite banks in the Federal Reserve solar system belongs to our close neighboring city of Richmond, Va. Its function is not unlike its eleven sister banks that are strategically positioned throughout the country, and together form our nations central banking system. Congress put the construct of the Federal Reserve into motion in 1913. The ideology of its birth was to stabilize America's rattled economy and protect the people from a nation wide financial institution meltdown. Despite its best efforts, the county's economy spiraled downward and eventually gave way to the Great Depression. Through the turmoil and hardship, the institution held its footing and emerged from World War II as our country rapidly expanded in both population and production. So, too, did the scope and oversight of the Federal Reserve. A few of its modern key focus' are: influencing the nations monetary policy through manipulation of lending interest rates; regulating the nations banking system; curbing systemic risk in the financial market; and serving as a financial mentor of sorts to various institutions and foreign states.As stated, the setup for the Federal Reserve presently consists of twelve regions that encompass all fifty states; and a Board of Governors - housed in Washington D.C. - that have final oversight of policy. Region Five is headquartered in Richmond, Va., with branch offices in Baltimore, Md. and Charlotte, N.C. The States within Region Five's purview include Virginia, Maryland (including the District of Columbia), West Virginia, North Carolina, and South Carolina. Each region serves the system under the same scope of responsibilities previously discussed in order to collectively ascertain and manage the nations monetary policy. Additionally, each labors to provide detailed research and analysis of raw economic data from their region, processes currency and electronic transactions, provides financial services to the U.S. Treasury, and serves as an informational and educational source for local and corporate banks headquartered in the region. The Research Departments of the twelve regional fingers of the bank are arguably their highest priority. The Richmond districts never-ending data collection mission plays a vital role in the overall mission of the Federal Reserve. Together with its counterparts, it serves as a critical informational database that will determine the nations monetary policy. In addition, the research departments' strive to educate and inform the local business populace of current economic trends in an effort to forecast upswings and downturns that would benefit of hinder the economy. It is in this capacity that the Regional branches have the most influence on the direction of the nations economic state.The Beige BookThe Beige Book is a tool used by the Federal Reserve to dissect and ascertain the current...

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