Federal Reserve Board (2024)

FAQs

What does the Federal Reserve Board do? ›

The Federal Reserve Board, commonly known as the Fed, is the central banking system of the United States. Its primary mission is to control monetary policy to promote stable prices, sustainable economic growth, and full employment.

The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate. A full term is fourteen years. One term begins every two years, on February 1 of even-numbered years. A member who serves a full term may not be reappointed.

The Congress sets the salaries of the Board members. For 2019, the Chair's annual salary is $203,500. The annual salary of the other Board members (including the Vice Chair and Vice Chair for Supervision) is $183,100.

How the Fed Helps the Economy. The Federal Reserve acts as the U.S. central bank, and in that role performs three primary functions: maintaining an effective, reliable payment system; supervising and regulating bank operations; and establishing monetary policies.

The Board of Governors--located in Washington, D.C.--is the governing body of the Federal Reserve System. It is run by seven members, or "governors," who are nominated by the President of the United States and confirmed in their positions by the U.S. Senate.

Federal Reserve Banks' stock is owned by banks, never by individuals. Federal law requires national banks to be members of the Federal Reserve System and to own a specified amount of the stock of the Reserve Bank in the Federal Reserve district where they are located.

Federal Reserve Board - Jerome H. Powell, Chair.

There is a common misconception that the Federal Reserve System is privately owned. In fact, it combines public and private characteristics: The central governing board of the FRS is an agency of the federal government and reports to Congress.

The president may not have the legal authority to dismiss a chairman before the end of a term, although this assumption has never been tested in court. The current chairman is Jerome Powell, who was sworn in on February 5, 2018.

The following is a list of past and present members of the Board of Governors of the Federal Reserve System. A governor serves for a fourteen-year term after appointment and member who serves a full term may not be reappointed; when governor completes an unexpired portion of a term may be reappointed.

Who funds the Federal Reserve Board? ›

The Federal Reserve is not funded by congressional appropriations. Its operations are financed primarily from the interest earned on the securities it owns—securities acquired in the course of the Federal Reserve's open market operations.

The website for the Board of Governors of the Federal Reserve System reports that the Fed Chair's salary in 2019 was set at $203,500. It also says that the annual pay for other Board members that year was $183,100.

U.S currency is produced by the Bureau of Engraving and Printing and U.S. coins are produced by the U.S. Mint. Both organizations are bureaus of the U.S. Department of the Treasury.

Keeping our economy healthy is one of the most important jobs of the Federal Reserve. The Federal Reserve System has been given a dual mandate—pursuing the economic goals of maximum employment and price stability.

The Board employs nearly 3,000 people in Washington, D.C. Regardless of where they work within the Federal Reserve System, employees aspire to achieve one mission: to provide our nation with a safer, more flexible, and more stable monetary and financial system.

Seven Board members and five Reserve Bank presidents direct open market operations that sets U.S. monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy.

The Real Estate Finance section analyzes current policy issues and conducts research on residential and commercial real estate finance, and studies households' balance sheet decisions and their implications for real economic activity.

The FOMC holds eight regularly scheduled meetings per year. At these meetings, the Committee reviews economic and financial conditions, determines the appropriate stance of monetary policy, and assesses the risks to its long-run goals of price stability and sustainable economic growth.