The Fed's Structure

The Federal Reserve System

• The nation's central bank
• A regional structure with 12 districts
• Subject to general Congressional authority and oversight
• Operates on its own earnings

Board of Governors

• Seven members serving staggered 14-year terms
• Appointed by the U.S. President and confirmed by the Senate
• Oversees System operations, makes regulatory decisions, and sets reserve requirements

Federal Reserve Banks

• 12 regional banks with 25 branches
• Each independently incorporated with a 9-member board of directors from the private sector
• Set discount rate, subject to approval by Board of Governors.
• Monitor economy and financial institutions in their districts and provide financial services to the U.S. government and depository institutions.
• Federal Reserve Banks and Branches, via the Board of Governors

Federal Open Market Committee

• The System's key monetary policymaking body
• Decisions seek to foster economic growth with price stability by influencing the flow of money and credit
• Comprised of the 7 members of the Board of Governors and the Reserve Bank presidents, 5 of whom serve as voting members on a rotating basis.

The Structure of the Federal Reserve System, via the Board of Governors