Federal Reserve

The Federal Reserve System is the central bank of the United States of America. Although previously opposed by the Democratic Party, when the Democrats won elections to both Congress and the White House in November 1912, the new President Woodrow Wilson felt that Aldrich's proposal required little modification. Aldrich's proposal thus became the basis for the Federal Reserve Act of 1913. Both the Board and the 12 Reserve Banks share responsibilities for the supervision of financial intermediaries and their activities, as well as for the provision of banking services to institutions credit and government. One of the main components of the Federal Reserve System is the Federal Open Market Committee, made up of 12 members.

Although previously opposed by the Democratic Party, when the Democrats won elections to both Congress and the White House in November 1912, the new President Woodrow Wilson felt that Aldrich's proposal required little modification. Aldrich's proposal thus became the basis for the Federal Reserve Act of 1913. Furthermore, members of the Board once appointed cannot be removed until their terms expire. The 12 regional federal banks represent the operational division of the United States central banking system and are organized as private law entities. Shares in each district can only be held by US banks.