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Federal reserve final-ppt system

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Federal reserve final-ppt system and structure for econ

Federal reserve final-ppt system and structure for econ

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Federal reserve  final-ppt system Federal reserve final-ppt system Presentation Transcript

  • The Federal Reserve SystemGroup C
    William Raymond
    Ailyn Smith
    Alexandria Salinas
    Brandon Lopez
    David Mitchell
    Our teacher
    HiranGunasekara
    Thurs class 12:30-1:50
    Oct 1, 2009
    Members include
  • Overview :
    Index
    Members Role
    History and understanding
    Structure of the federal Reserve
    What are the duties and responsibilities
    What is the Federal Open Market Committee
    Fed conducts monetary policy
    William Raymond &Ailyn Smith-structure
    Brandon Lopez – duties and responsibilities
    David Mitchell- FOMC
    Alexandria Salinas- Monetary policy
  • First Bank of the United States
  • Centralized Banking
  • The Federal Reserve understanding
  • FEDERAL RESERVE STRUCTURE
    By William Raymond and Ailyn Smith
    Set up in 1913 after the Federal Reserve Act of 1913
    Currently there are 5 board of governors that oversee everything that happens in the fed. And serve a 14 year term
    2009 Members of the FOMC
    Members
    Ben S. Bernanke, Board of Governors, Chairman
    William C. Dudley, New York, Vice Chairman
    Elizabeth A. Duke, Board of Governors
    Charles L. Evans, Chicago
    Donald L. Kohn, Board of Governors
    Jeffrey M. Lacker, Richmond
    Dennis P. Lockhart, Atlanta
    Daniel K. Tarullo, Board of Governors
    Kevin M. Warsh, Board of Governors
    Janet L. Yellen, San Francisco
  • FEDERAL RESERVE STRUCTURE 2
    Provided by CRS report for congress
    Board of governors was established as a federal government agency Is located in Washington, D.C.
    -Primary responsibility is formulation of monetary policy.
    -Have a broad range of supervisory and regulatory responsibilities that affect the entire US banking system.
    FOMCis policy making body for open market operations-
    -Meets in Washington, D.C., eight times a year.
    Consist of 12 members
    Federal Reserve banks- carry out day to day operations of the Federal Reserve system
    -Provide fiscal agency and depository services to the federal government.
    -operate under the general supervision of the Board of Governors in Washington
    - within each geographical district a city was designated as the location of the Reserve banks
    Member banks- Hold stock in their local Federal Reserve Bank
  • Federal Reserve Banks continued
    There are 12 Federal reserve banks. Each one has a board of directors work closely with the reserve bank president which provide input on monetary policy
    The primary responsibility of the central bank is to influence the flow of money and credit in the nation's economy.
    This is the New York Federal Reserve Bank on 33 liberty street.
    New York reserve is most dominant of them all. Has over 5,000 metric tons of gold bullion ($160 billion as of March 2008). This is the largest amount of gold in the world on record. However Swiss Banks don’t have to disclose that information.
  • Interest Rates
    Federal Fund Rate
  • Open Market Committee
    The Federal Open Market Committee (FOMC).
    Membership:
    The FOMC is composed of the seven members of the Board of Governors and five Reserve Bank presidents.
    Organization:
    By statute, the FOMC determines its own organization. Each year at its first meeting, the Committee elects its Chairman and Vice Chairman and selects staff officers to serve the Committee for the coming year.
    Decision-making Process:
    They debate on financial and economic decisions. Vote on new policies. These will in fact affect the growth of the economy.
    Effects of Policy:
    Depository institutions are required to maintain reserves in certain proportions against various types of their checkable deposits. Open market operations as directed by the FOMC are the major tool used to influence the total amount of money and credit available in the economy.
    ReportsBy law, the Board of Governors must keep a record of the actions taken by the FOMC on all questions of policy and to include in its annual report to Congress the vote on and reasons for each actions.
  • Federal Reserve System
    Duties and Responsibilities
    Brandon Lopez
  • What are the Federal Reserve’s duties and responsibilities?
    There are certain duties and responsibilities that need to be performed to help better the nation. Placed under 4 general ideas, the duties and responsibilities of the Federal Reserve are as followed:
    Monetary Policy
    Supervision & Regulation
    Consumer & Community Affairs
    Payment System
  • Monetary Policy
    The Federal Reserve must manage the nation’s monetary policy by helping influence money and credit conditions in the economy that focuses on employment throughout the nation and reasonable prices.
    Goals
    Monetary Policy affecting the Economy
    Limitations
    Guides
    Monetary Aggregates
    Interest Rates
    The Taylor Rule
    Foreign Exchange Rates
  • Supervision & Regulation
    The Federal Reserve must supervise and manage banks to make sure that the nation’s banking and financial system are safe and secure. They must also protect the credit rights of all financial institutions’ clients.
    Responsibilities
    Federal Financial Institutions Examination Council
    Supervisory Process
    Regulatory Functions
  • Consumer & Community Affairs
    The Federal Reserve must manage and keep high standards of stability of the financial system and must be ready for systemic risk that may occur in financial markets.
    Responsibilities
    Consumer Protection
    Community Affairs
  • The Federal Reserve in the U.S. Payments System
    The Federal Reserve must participate in financial services to the U.S. government, to the public, to financial institutions (banks), and to foreign official institutions, as well as helping with operating the nation’s payment systems.
    Congress
    Financial services
    Fiscal Agency Services
  • Monetary policy is made by the FOMC (Federal Open Market Committee)
    1. Seven members on the board of governors
    2. Five reserve bank presidents
    3. Meet eight times a year
  • Open Market Operations
    1. Buying and selling previously issued securities
    2. Add credit to banking system when they buy securities from dealers
    3. Drain credit when they sell securities to dealers
    4. This determines the federal funds rate
  • Discount rate policy
    1. Make Short Term Loans to Banks to Help with Reserves
    2. Raise the rate- slows economy, checks inflation
    3. Lower the Rate- stimulates economic growth
  • Reserve Requirements
    1. Raise the Amount- Reduce Lending
    2. Lower Reserve Amount- Increase Lending
    3. Not changed much, last change was in 1992 from 12% to 10%
  • Sources
    Structure -
    http://en.wikipedia.org/wiki/First_Bank_of_the_United_States
    http://www.federalreserve.gov/pubs/frseries/frseri3.htm
    http://www.federalreserve.gov/
    http://en.wikipedia.org/wiki/Federal_Reserve_System
    https://www.policyarchive.org/bitstream/handle/10207/3436/RS20826_20050615.pdf?sequence=1
  • THANK YOU FOR YOUR TIME AND WE HOPE ON BEHALF OF THE GROUP MEMBERS THAT YOU HAVE A WIDE ARRAY OF NEW KNOWLEDGE THAT YOU CAN TAKE WITH YOU ABOUT THE FEDERAL RESERVE SYSTEM.
    WE WOULD ALSO LIKE TO THANK OUR TEACHER HIRAN G FOR GIVING US THIS TIME TO BE A PART OF HISTORY AND TO DO A RESEARCH ON SUCH A IMPORTANT TOPIC THAT WILL AFFECT OUR KIDS AND THE FUTURE.
    THE END