The FED's organizational structure includes 3 important entities:
Federal Reserve Board of Governors: Includes the president, vice president and 5 other members of the board (7 people total). These 7 positions are proposed by the president and approved by the US Senate.
Federal Reserve Banks: System of 12 member banks of the Fed in 12 states distributed throughout the United States. Each bank will have its own chairman and own a certain amount of shares in the FED.
Federal Open Market Committee (FOMC): Holds three main tools that help the FED regulate the monetary market (open market operations, interest rates and required reserve ratio). The FOMC consists of 12 members, including 7 members of the Board of Governors, a member bank president in New York and 4 other member bank presidents selected on a periodic basis (rotation basis).
The 5 main tasks of the FED include:
Implement monetary policy.
Ensuring financial system stability.
Supervise and operate member banks.
Promote a payment system that ensures safety and efficiency.
Support to promote community development and protect customers' rights.
Regarding the implementation of monetary policy, the FED together with the government launched these policies to ensure two factors:
Economic promotion ensures price stability.
Guaranteed job market.
Thus, it can be seen that the FED is privately owned, but the operations of the executive board and making important decisions on adjusting monetary policy still involve the government's participation - through 7 members. in the executive board. Therefore, the Fed's goal will still be to ensure common benefits for all Americans.
