For a start it is worth noting that the Federal reserve was created in December, 1913, after which began to serve as an independent Federal Agency to perform the functions of the Central Bank, which subsequently allowed her to take control of the entire US financial system, including banking sector. At the moment, the fed Chairman is Jerome Powell.
Let's start with the fact that all the functions and actions of the Federal reserve under the control of the government and meet the economic development and financial policy of the country. In accordance with the law on the fed, the system performs the following functions:
- implements the issuance of USD;
- regulates the money circulation in the financial markets;
- monitors domestic and international transactions;
- solve conflicts between borrowers and investors;
- controls the whole banking system of the United States;
- should the financial plan of the Central Bank of the United States;
- correlates of the interaction between the social sector and commercial entities in the United States;
- provides services to Depository nature of American government and international institutions;
- provides loans and credit communities.
- governs liquidity at the country level.
But it was an old function. Now the range of influence of the Federal reserve has changed significantly, which is why the fed is engaged in:
- minimizes the risks in the financial markets;
- it supports the US economy in crisis situations;
- controls the banking sector, protecting the rights and abilities of clients;
- stabilize the market price;
- monitors employment;
- provides financial services for the us government, financial institutions and legal entities;
- investing in foreign companies, due to the management of the state system of transfer payments.
Actually, it is possible to say that the Federal system of the United States, in a sense, replaces the Central Bank. The only difference is that the fed is a private entity and the Central Bank of the state. It is worth noting that the fed is in some sense reminiscent of joint-stock company, the assets of which have considerable market demand. The us government sets the direction of activities of the United States, establishing the Commission members and management team. To get to the position the applicant must be approved by the Senate.