What is the Federal Reserve Bank?
Federal Reserve Bank refers to any of the 12 branches of the Federal Reserve System overseeing the implementation of U.S. monetary policy.
How Does the Federal Reserve Bank Work?
As the country's central banking authority, the Federal Reserve System operates in 12 designated regions (or districts) throughout the United States. Each district is overseen by a Federal Reserve branch bank in a centrally-located major city. These banks are identified by the city in which they are located (e.g. Federal Reserve Bank of New York or Federal Reserve Bank of Boston). These cities are: Atlanta, Boston, Chicago, Cleveland, Dallas, Kansas City, Minneapolis, New York, Philadelphia, Richmond, San Francisco, and St. Louis.
Each Federal Reserve Bank is responsible for lending money and providing financial services to member banks within its district, overseeing the implementation of the Federal Reserve's monetary policy, and monitoring economic activity by collecting and analyzing data for use by the Federal Reserve Board (FRB) as well as the Federal open Market Committee (FOMC).
Why Does the Federal Reserve Bank Matter?
The U.S. and its economy cover a very large geographical area. The Federal Reserve delegates its central banking authority to Federal Reserve Banks by district in order to facilitate its exercise over the monetary system through lending and policy implementation.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.
Read This Next
Building good credit is like trying to lose weight -- it takes time, effort and persistence to reach...Read More →
Calculating Internal Rate of Return (IRR) can be tedious if you have ...Read More →