The original intent of the Federal Reserve Act was to give the central bank control over the amount of currency outstanding and the volume of loans—known as discount loans—to member banks under the lender-of-last-resort function. Over time, the Fed has expanded its role in the financial system.
Member banks receive fixed dividends of 6% on the shares of stock they own in the District Bank.
Member banks enjoy few of the rights and privileges that shareholders ordinarily exercise.
For much of the Federal Reserve System’s history, the nine directors of a Federal Reserve District Bank have elected the president of that bank, subject to approval by the Board of Governors. Under the Dodd- Frank Act, the Class A directors no longer participate in the election of bank presidents.
DIDMCA effectively blurred the distinction between member and nonmember banks and halted the decline in Fed membership.
In October 2008, the Fed began paying banks an interest rate of 0.25% on reserves, which lowered the opportunity cost to banks of holding reserves.
Ben Bernanke was appointed chair in January 2006 by President George W. Bush and reappointed in January 2010 by President Barack Obama.
Chairmen of the Board of Governors since World War II have come from various backgrounds, including Wall Street (William McChesney Martin), academia (Arthur Burns and Ben Bernanke), business (G.William Miller), public service (Paul Volcker), and economic forecasting (Alan Greenspan).
Monetary policy is used to influence the nation’s money supply and interest rates through open market operations, reserve requirements, and discount lending. Margin requirements refer to the proportion of the purchase price of securities that an investor must pay in cash rather than buy on credit. The new Financial Stability Oversight Council (FSOC), established by the Dodd-Frank Act in 2010 to regulate the financial system, includes the chairman of the Board of Governors.
During the financial crisis, Fed Chairman Ben Bernanke needed to make decisions rapidly and to use new policy tools. As a result, the focus of monetary policy moved away from the FOMC. As more normal conditions return to the economy and financial system, the FOMC is likely to resume its previous importance.
The unintended consequence of the Sunshine Act requirements was to drastically limit the input of the other members of the Board of Governors into monetary policymaking.
For instance, Microsoft averaged about $20 billion in profits annually between 2006 and 2010, while IBM averaged about $14 billion during the same period. Unlike with these corporations, however, any income the Fed earns in excess of its expenses is transferred to the U.S. Treasury.
The federal courts have upheld the constitutionality of the Federal Reserve Act, notably in the 1929 case Raichle v. Federal Reserve Bank of New York.
Offenbar haben Sie einen Ad-Blocker installiert. Wenn Sie SlideShare auf die Whitelist für Ihren Werbeblocker setzen, helfen Sie unserer Gemeinschaft von Inhaltserstellern.
Sie hassen Werbung?
Wir haben unsere Datenschutzbestimmungen aktualisiert.
Wir haben unsere Datenschutzbestimmungen aktualisiert, um den neuen globalen Regeln zum Thema Datenschutzbestimmungen gerecht zu werden und dir einen Einblick in die begrenzten Möglichkeiten zu geben, wie wir deine Daten nutzen.
Die Einzelheiten findest du unten. Indem du sie akzeptierst, erklärst du dich mit den aktualisierten Datenschutzbestimmungen einverstanden.