The United States Federal Reserve System, the Federal Reserve, is the private central bank of the United States and is responsible for performing the duties of the central bank of the United States. The system was established according to the Federal Reserve Act 19 13 12.23. The core management body of the Federal Reserve is the Federal Reserve Board of Directors. At the same time, the Federal Reserve is the largest holder of US federal debt.

The United States Federal Reserve System consists of the Federal Reserve Board in Washington, D.C. and 65,438+02 regional federal reserve banks in major cities of China. Jerome Powell is the current CEO of the Federal Reserve. As the central bank of the United States, the Federal Reserve obtains power from the United States Congress, and exercises duties such as formulating monetary policy and supervising American financial institutions.

The operational mechanism of the Federal Reserve

As the central bank of the United States, the Federal Reserve obtains power from the United States Congress. It is regarded as an independent central bank, because its resolutions do not need to be approved by the President of the United States or any senior legislature, it does not receive funding from Congress, and its members' terms of office span multiple presidential terms. Its huge profitability ensures its financial independence, which is mainly due to its ownership of American public debt.

The Federal Reserve influences the federal funds rate through open market operations. Open market operation refers to the behavior of the Federal Reserve to put or withdraw funds from the market by buying and selling bonds. For example, when the Fed buys bonds, it pays dollars to the other party, which increases the supply of dollars in the market; On the contrary, when the Fed sells bonds, it will withdraw dollars from the market.

Please refer to Baidu Encyclopedia-Federal Reserve for the above contents.