The Federal Reserve System, the Federal Reserve, is a privately owned central bank in the United States. The Federal Reserve is the largest holder of federal debt in the United States, which is a strict secret for shareholders and is responsible for fulfilling the duties of the US central bank. The system was established on 19 13 12/23 according to the Federal Reserve Act. The core management body of the Federal Reserve is the Federal Reserve Board of Directors.
The Federal Reserve System of the United States is the central bank of the United States. Compared with other countries' central banks, the Federal Reserve came into being later.
Historically, the United States has tried many times to establish a central bank like the Federal Reserve, but all failed because legislators and presidents were worried that the central bank was too powerful or kidnapped by a few interest groups. This kind of worry is mainly determined by the national form of the United States.
In the early days of the founding of the People's Republic of China, the United States was a loose organization composed of some independent states in federal form, and most of the administrative power was mainly concentrated in the state government, not the federal government. Therefore, the idea of establishing a federal agency similar to the central bank will arouse the vigilance of States, who are worried that the federal government wants to expand its power in this name.
The first and second banks in the United States were eventually forced to close because they were not accepted by the public. One of the important reasons is that both banks are located in Philadelphia in the northeast of the United States. Many people think that they mainly serve some wealthy businessmen in the northeast, not all Americans. The Federal Reserve earnestly learned this lesson when it was founded.
In organizational form, the Federal Reserve adopts a dual organizational structure of federal government agencies and non-profit organizations, thus avoiding the complete concentration of monetary policy in the hands of the federal government.
The original intention of the Federal Reserve to set up the 12 Federal Reserve Bank as a non-profit organization rather than a government organization is to consider the voices of both the government and the private sector when formulating monetary policy. Although the Federal Reserve in Washington State is a part of the US federal government, 12 Federal Reserve Bank is not a federal government agency, but a non-profit private organization. However, it should be emphasized that the Federal Reserve Bank is different from ordinary private institutions. The Federal Reserve Bank is not for profit, but it undertakes the public functions of the US central bank together with the Federal Reserve.