Where is the Federal Reserve Bank registered and incorporated?
The Federal Reserve System is the central banking system of the United States and is composed of 12 regional Federal Reserve Banks. Each of the 12 Federal Reserve Banks is incorporated separately and is located in a different city in the United States. Here are the locations of the 12 Federal Reserve Banks:
- Boston, Massachusetts (First District)
- New York, New York (Second District)
- Philadelphia, Pennsylvania (Third District)
- Cleveland, Ohio (Fourth District)
- Richmond, Virginia (Fifth District)
- Atlanta, Georgia (Sixth District)
- Chicago, Illinois (Seventh District)
- St. Louis, Missouri (Eighth District)
- Minneapolis, Minnesota (Ninth District)
- Kansas City, Missouri (Tenth District)
- Dallas, Texas (Eleventh District)
- San Francisco, California (Twelfth District)
Each Federal Reserve Bank is registered and incorporated under the laws of the state in which it is located.
Who are the shareholders of the Federal Reserve Bank
The Federal Reserve System is not owned by any individual or group of individuals, nor is it a government agency. Instead, it is an independent entity within the government, designed to be self-funded and self-governing in its operations.
The Federal Reserve Banks are technically owned by the member banks in their respective districts. However, ownership does not confer control, and member banks have very little say in the day-to-day operations of the Federal Reserve Banks.
The member banks are required to purchase stock in their local Federal Reserve Bank in order to become members of the Federal Reserve System. However, the stock is not publicly traded and cannot be sold or traded on any stock exchange. Instead, ownership of the stock entitles member banks to receive dividends on a fixed rate of return, and to vote on the selection of some members of the board of directors of the Federal Reserve Bank.
In summary, the shareholders of the Federal Reserve Banks are the member banks in their respective districts, but ownership does not give them any meaningful control over the Federal Reserve System.
Who has control over the Federal Reserve System
The Federal Reserve System is designed to be an independent entity within the government, with a great deal of autonomy in its decision-making and operations. While there are several entities and individuals that have some degree of influence over the Federal Reserve System, no single group or individual has complete control over the System.
Here are some of the key entities and individuals that have some degree of influence over the Federal Reserve System:
The Board of Governors: The seven-member Board of Governors is appointed by the President and confirmed by the Senate. The Board is responsible for setting monetary policy and overseeing the operations of the Federal Reserve System.
The Federal Open Market Committee (FOMC): The FOMC is composed of the seven members of the Board of Governors, plus five of the 12 Federal Reserve Bank presidents. The FOMC is responsible for setting monetary policy by setting the target for the federal funds rate, which is the interest rate at which banks lend to each other overnight.
The President of the United States: The President has the power to nominate members of the Board of Governors, which can have a significant impact on the direction of monetary policy.
Congress: Congress has oversight authority over the Federal Reserve System, and can hold hearings and enact legislation that affects the System.
Financial Markets: Financial markets can also have an impact on the Federal Reserve System, as changes in the markets can influence the decisions of the Board of Governors and the FOMC.
Overall, while these entities and individuals have some degree of influence over the Federal Reserve System, the Central Banking System is designed to be independent and insulated from political pressures, in order to promote sound monetary policy and stable economic growth.
What backs the Federal Reserve Note?
The Federal Reserve Note, which is the paper currency that is issued by the Federal Reserve System, is not backed by any particular asset or commodity. Instead, the value of the currency is backed by the faith and credit of the United States government and the Federal Reserve System.
The Federal Reserve System has the authority to create money, and it does so by purchasing government securities or other assets from banks and other financial institutions, using newly-created money. This process is known as open market operations, and it allows the Federal Reserve System to control the money supply and interest rates.
While the Federal Reserve Note is not backed by a specific asset, it is widely accepted as a medium of exchange and a store of value because of the confidence that people have in the stability and reliability of the United States government and the Federal Reserve System. The government and the Federal Reserve System have a long history of maintaining the stability of the currency, and this has helped to maintain the confidence of the public in the value of the currency over time.
Central Banking System