Please somebody explain this: Who is the fed reserve ?

Question

Everybody seems to gloss over this question and say stuff like "fed reserve is privately owned."

okay, I think everybody knows that now. My question is this:

Who is the federal reserve? If it is privately owned, than which privately owned institutions own or constitute the fed reserve? Is it the same with Bank of England?

Answer 1

Like the Bank of England the Fed reserve also known as the Federal reserve is a central bank. The reserve uses interest rates to keep inflation within a target band and also has the power to print money and is independent from the US government like the Bank of England is independent from the UK government. The part of the federal reserve which decides the key interest rate is the Federal Open Market Committee.

Answer 2

Feel free to go to the Federal Reserve's website and educate yourself. It has nothing at all to do with England (despite the fetishes of some conspiracy theorists). It is a unique entity considered "quasi governmental".

It has a .gov website; it was created by an act of Congress, and could be eliminated tomorrow by another act of Congress if we so desired; the Chairman of the Fed is appointed by the President and approved by Congress. The Fed is accountable to Congress.

But on the other hand the Fed Reserve system is "owned" by its member banks -- American banks in the US banking system. But, it's a weird kind of "ownership" -- banks must own the stock to be part of the system, but the banks don't actually control the Federal Reserve and can't sell the stock. Hence, it's quasi-governmental.

Answer 3

The Federal Reserve System controls the size of the money supply by conducting open market operations, in which the Federal Reserve lends or purchases specific types of securities with authorized participants, known as primary dealers. All open market operations in the United States are conducted by the Open Market Desk at the Federal Reserve Bank of New York, with an aim to making the federal funds rate as close to the target rate as possible. For a detailed look at the process by which changes to a reserve account held at the Fed affect the wider monetary supply of the economy, see money creation.

The Open Market Desk has two main tools to adjust the monetary supply: repurchase agreements and outright transactions.

Answer 4

The Federal Reserve Bank is the Central Bank of the United States. It is in fact privately owned, but it's biggest thing is how it controls how cheap money is flowing into the US economy. By controlling a number of interest rates it controls how cheaply banks can borrow money, therefore how cheaply consumers can borrow money. This is why people worry so much about the Federal Funds Rate, the prime interest rate that affects everything from credit cards to mortgages.

Answer 5

Nothing fed is privately owned except the FedEx...
The Federal Reserve is owened by the Federal government

Answer 6

If it occurs the effect will quite be in step with what forex if any replaces it; I say if any because of the fact it may be obtainable that a clean common forex must be designed yet that is tough so the different ingredient could be to make it gold based and that should reason some substantial inflation reckoning on the futures determining to purchase and merchandising there. good now i think of that's many times communicate with decrease the U. S. spending/deficit which China and others have already expressed concern approximately. a sort of waut and notice what occurs then what the effect would be.

Answer 7

Isn't it just an enormous pile of gold kept in Fort Knox in case the US needs to buy anything really pricey?