Government. What Relations Does The Federal Reserve Have With The US Government And The US Treasury?

Government : What Relations Does The Federal Reserve Have With The US Government And The US Treasury

What are the interactions between the Fed and the US govt and the interactions between the Fed and the US treasury? Thanks!! ~~~ kewpieklone ~~~

Best Answer To Government Question

The Federal Reserve System is a congressionally-chartered agency like the USPS and NASA. It is organized with a 100% government agency at the top (the Board of Governors), and branches beneath them that resemble corporations. (/fed101/structure/ ) The Board of Governors are all appointed for 14-year terms by the president and confirmed by congress. It operates per its charter and laws set by congress. it is overseen by congress. There is no structure or mechanism for private ownership at this level; it is a government agency. Board members are forbidden by law to have any economic interest in a private bank. (Ref: Title 12 chapter 3 of the . Legal Code). The Board determines monetary policy and provides high level oversight of the branches. The 12 branches, however, are organized to involve member banks in the day-to-day operation. Member banks are required to buy shares in their branch. Each bank has one vote. The shares get a standard 6% dividend. They can vote for 6 of their 9 board members. All profit from the Federal Reserve are turned over to the Treasury at the end of the year. At one time the Treasury Secretary was, in fact, the de facto chairman of the Federal Reserve Board of Directors (later renamed to the "Board of Governors"). In 1935, an official position of Federal Reserve Board Chairman was created but there was still a close relationship. In 1951, the "Treasury Accord" was reached which was an agreement that the Federal Reserve and monetary policy should be more independent and not subject to political meddling. One area that the Federal Reserve and Treasury do collaborate almost daily is the managing of the nations currency. The Treasury is the only agency that can authorize the printing of currency. So the Federal Reserve has to submit requests for currency which the Treasury reviews and approves. Another area is banking supervision. Both are involved in the FDIC, banking regulations, and audits. Since they have common goals, they often coordinate and work together on such matters.

All Answer To Government Questions

Answer 1

None, other than they print the money for the government, back it by nothing, and then charge interest on it. We have no control over the FED.

Answer 2

This is a question that will get you audited and listed.

Answer 3

The Federal Reserve System is a congressionally-chartered agency like the USPS and NASA. It is organized with a 100% government agency at the top (the Board of Governors), and branches beneath them that resemble corporations. (/fed101/structure/ ) The Board of Governors are all appointed for 14-year terms by the president and confirmed by congress. It operates per its charter and laws set by congress. it is overseen by congress. There is no structure or mechanism for private ownership at this level; it is a government agency. Board members are forbidden by law to have any economic interest in a private bank. (Ref: Title 12 chapter 3 of the . Legal Code). The Board determines monetary policy and provides high level oversight of the branches. The 12 branches, however, are organized to involve member banks in the day-to-day operation. Member banks are required to buy shares in their branch. Each bank has one vote. The shares get a standard 6% dividend. They can vote for 6 of their 9 board members. All profit from the Federal Reserve are turned over to the Treasury at the end of the year. At one time the Treasury Secretary was, in fact, the de facto chairman of the Federal Reserve Board of Directors (later renamed to the "Board of Governors"). In 1935, an official position of Federal Reserve Board Chairman was created but there was still a close relationship. In 1951, the "Treasury Accord" was reached which was an agreement that the Federal Reserve and monetary policy should be more independent and not subject to political meddling. One area that the Federal Reserve and Treasury do collaborate almost daily is the managing of the nations currency. The Treasury is the only agency that can authorize the printing of currency. So the Federal Reserve has to submit requests for currency which the Treasury reviews and approves. Another area is banking supervision. Both are involved in the FDIC, banking regulations, and audits. Since they have common goals, they often coordinate and work together on such matters.