Who Runs the Federal Reserve?
First of all, you can be assured that it is not run by one person alone. There is a group of people who are responsible for all of the ins and outs of the Reserve. As a matter of fact, there is more than one group of people who are a part of our government’s monetary decisions.
All of these committees are called councils. They include: The Consumer Advisory Council, Federal Advisory Council, and the Thrift Institutions Advisory Council.
The Consumer Advisory Council supports the Consumer Credit Protection Act, and is responsible for representing communities, consumers, and finance services on the Federal Reserve Board. There are currently 28 members in this section of the Board. They hold three meetings every year in Washington D.C. and it just so happens that these meetings are open to the public. This council was originally established in 1976.
The Federal Advisory Council is a twelve member committee that represents the banking industry. A minimum of four meetings are held each year by this council, also in Washington D.C.
The Thrift Institutions Advisory Council was established in 1980 and holds twelve members. This committee supports the interests of thrift institutions like credit unions, savings and loan institutions, and mutual savings banks.
Each one of these councils directly advises the Federal Reserve Board. The Board of Governors consists of seven members that are appointed by the President and approved by the Senate. The maximum term for these members is fourteen years, which need not be consecutive. The Board of Governors is responsible for creating, regulating and supervising monetary policy for the country. This is done, of course, under the councils of Consumer, Federal, and Thrift Institution Advisory committees. These Governors meet several times a week to discuss policy and various monetary responsibilities.
The Board of Governors is also a part of the Federal Open Market Committee, which includes five Reserve Bank Presidents. They meet quarterly.
The Federal Reserve is a highly structured system. As you now know, the seven member Board of Governors holds the most responsibility. With much council, meetings, and deliberation, the laws are made, amended, and supervised.
On a more local level, the 12 Federal Districts are served by the Reserve Bank Presidents, who are the chief executive officers of the Federal Reserve Bank in their district. The twelve districts are Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas and San Francisco. If you are interested in finding out how your local district Federal Reserve Bank can help your needs visit this website.
If you are curious about how you as a consumer are being represented by the Consumer Advisory Council, you can attend one of their meetings throughout the year. The next meeting is due in late October in Washington D.C. These meetings are open to the public. If you are in the area, or don’t mind taking a trip, I would encourage you to attend and learn about your rights as an American consumer in the United States.
