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TRADING #101 COURSE – PART II TWO: SUCCESSFUL TRADING PIE – WWW.TRADERSCOACH.COM
U.S. Federal Reserve System
The U.S. Federal Reserve System, also known as the Federal Reserve and the Fed, is
the central banking system for the United States. It was created in 1913 with the
enactment of the Federal Reserve Act in response to a series of financial panics,
including a severe panic in 1907. Over time, the responsibility of the Fed has expanded
and changed.
The current structure of the U.S. Federal Reserve System is composed of the following:
• The Federal Reserve Board (or the seven members of the Board
of Governors), appointed by the U.S. President, publishes the
Beige Book.
• The 12 Federal Reserve Banks are in major cities throughout the
country: 1st District, Boston, Massachusetts; 2nd District, New
York, New York; 3rd District, Philadelphia, Pennsylvania; 4th
District, Cleveland, Ohio; 5th District, Richmond, Virginia; 6th
District, Atlanta, Georgia; 7th District, Chicago, Illinois; 8th District,
St. Louis, Missouri; 9th District, Minneapolis, Minnesota; 10th
District, Kansas City, Missouri; 11th District, Dallas, Texas; and
12th District, San Francisco, California.
• The Federal Open Market Committee (FOMC) consists of the
seven members of the Federal Reserve Board and the 12 regional
Federal Reserve Bank presidents.
• Privately owned U.S. member banks.
• Various advisory councils.
According to the Federal Reserve Board, the Federal Reserve is independent within the
government in that its decisions do not have to be ratified by the President or anyone
else in the executive or legislative branch of government.
However, its authority is derived from the U.S. Congress and is subject to congressional
oversight. In addition, the members of the Federal Reserve Board, including its
chairman and vice chairman, are chosen by the President and confirmed by Congress.
The four most recent Fed chairmen have been:
• Janet Yellen, February 1, 2014 to the present.
• Ben Bernanke, February 1, 2006, to January 31, 2014.
• Alan Greenspan, August 11, 1987, to January 31, 2006.
• Paul Volcker, August 6, 1979, to August 11, 1987.
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