The Federal Reserve conducts the nation's monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy;promotes the stability of the financial system and seeks to minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad;promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole;fosters payment and settlement system safety and efficiency through services to the banking industry and the U.S. government that facilitate U.S.-dollar transactions and payments; andpromotes consumer protection and community development through consumer-focused supervision and examination, research and analysis of emerging consumer issues and trends, community economic development activities, and the administration of consumer laws and regulations.Read more in the 10th edition of Federal Reserve System Purposes & Functions.free forex signalsFigure uses a pyramid of graphics to describe the Federal Reserve System.
Third level: The 5 Key Functions of the Federal Reserve System: conducting the nation's monetary policy, helping maintain the stability of the financial system, supervising and regulating financial institutions, fostering payment and settlement system safety and efficiency, and promoting consumer protection and community development.forex signalsThe Decentralized System Structure and Its PhilosophyIn establishing the Federal Reserve System, the United States was divided geographically into 12 Districts, each with a separately incorporated Reserve Bank.
Twelve Federal Reserve Districts operate independently but with supervisionFederal Reserve District boundaries are based on economic considerations; the Districts operate independently but under the supervision of the Federal Reserve Board of Governors.forex signals  Federal Reserve Banks01-Boston02-New York03-Philadelphia04-Cleveland05-Richmond06-Atlanta07-Chicago08-St. Louis09-Minneapolis10-Kansas City11-Dallas12-San Francisco BoardThe Federal Reserve officially identifies Districts by number and Reserve Bank city.forex signals  In the 12th District, the Seattle Branch serves Alaska, and the San Francisco Bank serves Hawaii.
The concept of national economic policymaking was not well developed, and the impact of open market operations--purchases and sales of U.S. government securities--on policymaking was less significant.
While the Federal Reserve has frequent communication with executive branch and congressional officials, its decisions are made independently.forex trading signalsThe Three Key Federal Reserve EntitiesThe Federal Reserve Board of Governors (Board of Governors), the Federal Reserve Banks (Reserve Banks), and the Federal Open Market Committee (FOMC) make decisions that help promote the health of the U.S. economy and the stability of the U.S. financial system.
Three key entities, serving the public interestThe framers of the Federal Reserve Act developed a central banking system that would broadly represent the public interest.forex trading signals CONGRESS graphic positioned above the three key Federal Reserve entities' graphics: 'CONGRESS oversees the Federal Reserve System and its entities.'
