[金融市场与机构英文版第四章.pptVIP

4 The Fed and Monetary Policy Chapter Objectives Identify the Fed’s role in monetary policy Describe the tools the Fed uses to influence monetary policy Explain how changes in regulation in the 1980s affected the Fed and monetary policy Federal Reserve System: Third U. S. Central Bank First Bank of the United States (1791–1811) Second Bank of the United States (1816–1836) Federal Reserve System (1913–) Structure of the Federal Reserve System 12 Fed District Banks Member Commercial Banks 7 Members of Board of Governors 14 year terms for Governors 12 Open Market Committee (FOMC) Members Advisory Committees to Fed from private sector Functions of the Federal Reserve System Effect Monetary Policy U.S. Central Bank In International Area Fiscal Agent of U.S. Treasury Facilitate Efficient Payments System Regulate Banks and Bank Holding Co. Enforce Consumer Credit Laws Organization of the Federal Reserve Federal Reserve District Banks 12 districts Districts divided by population at 1912–13 District bank size related to economic wealth of district District banks owned by private member banks Board of Directors of district banks Three appointed by Board of Governors Three professional bankers Three business persons in district Organization of the Federal Reserve Member Banks Must meet requirements of the Federal Reserve Board of Governors to be a member bank Nationally chartered banks must be member banks State chartered banks may be member banks 35% of banks controlling 70% of all deposits are members Organization of the Federal Reserve Board of Governors 7 individuals appointed by the U.S. president and confirmed by the Senate U.S. president appoints one of the 7 chair whose 4-year term is renewable Offices in Washington, D.C. Serve nonrenewable 14-year terms Independence of Federal Reserve Staggered terms of Governors Budget separate from Congress Organization of the Federal Reserve Board of Governors has two main functions: Regulate commercial banks Supervise and r