Federal Reserve Bank
In order to understand why the Federal Reserve Bank exists and its involvement in our fiscal policies, I will explain why the government believes it is necessary to have a hand in the growth of the economy . Numerous clues assist the government with projections of where the economy is headed in the short term and in the long term. Using history as a guide, the government can assist the economy and allow for modifications that may be needed for growth in the economy and to help bolster the U.S. dollar.
Many U.S. citizens seem to be confused on what The Federal Reserve Bank really is. The FRB is not an ordinary bank, it is a bank for banks. It is essentially the bank of the United States. The FRB has a Board of Governors that determines the interest rates through fiscal policies, which effects everyone in the United States. During one of our classes we discussed The Federal Reserve Bank and I, like many Americans, was very unfamiliar with their role in the economy. This intrigued me to write a paper and to help familiarize the reader with The FRB and its role in the economy.
The Federal Reserve was constructed by Congress and it is comprised of seven members that make up the Board of Governors. There are an additional twelve Reserve banks in other cities spread throughout the U.S. Located in Washington D.C. and chosen by the President, the Central Bank Board of Governors has members with strong backgrounds in economics ranging from BA to PH.D in economics. The current Board members are Ben S. Bernanke, Chairman; Janet L. Yellen, Vice Chair; Elizabeth A. Duke; Daniel K. Tarullo; Sarah Bloom Raskin; Jeremy C. Stein; Jerome H. Powell (Federal Reserve 2012).The Board uses each member's expertise to construct fiscal policies. Fiscal policy is a policy of altering the U.S. economy through revisions in banking systems reserves that alter the money supply and the available credit in the economy. The FRB uses its fiscal policies to...