The Feds

The Feds

The feds are also known as the Federal Reserve and they are in charge of the central banking system of the U.S. The federal reserve act created on December 23rd 1913 is responsible for a number of serious financial panics such as the panic of 1907, this financial expansion crisis was responsible for the great depression that were changes in the system due to the federal reserve. A federal reserve document was conducted and included the nation's monetary policy, they took charge of supervising and regulating banking institutions, maintaining the stability of the financial system and providing financial services to the U.S. government and foreign official institutions. The feds also take charge in conducting a research into the economy and has released numerous publications such as on book called the beige book. This system is composed of Board of Governors, The federal open market committee, and twelve regional Federal Reserve banks across the nation and the U.S. The Federal Reserve has both private and public components, it was designed to serve both the general public and private bankers. The United States Department of Treasury creates the currency used for the banks. The Federal Reserve does not have to be approved by the president or anyone in the legislative or executive branches of the government. This authority is dubbed from the U.S. Congress. Chairman and vice- chairman and board of governors are chosen by the president and finally confirmed by the senate. The U.S. Government receives all annual profits after dividend 6% on member banks and capital investment is paid, account surplus is maintained. In the year 2010 the Federal Reserve made a profit of 82 billion dollars and was transferred 79 billion dollars to the U.S. Treasury, this same thing was continued at the end of 2010 with 77 billion in profit to the U.S. Treasury Department.