Essay About Federal Reserve Paper And Federal Reserve Bank

Federal Reserve Paper – Monetary Policy Report to the CongressAfter reading the “Monetary Policy Report to the Congress” reported by the website Federal Reserve.com (2011). This student is almost more confused presently than ever. The facts and figures are difficult to wade through, but this student will give it a try.

The purpose and function of money in today’s world market are still assets in which citizen’s exchange for goods and services received or for paying one’s creditors. Revenue (cash) is utilize in implemented to do four operations, which is store accounts, medium exchange, unit of account, and standard of deferred payments.

Store accounts basically are revenue is allowing to be saved. Revenue is a standstill just sitting, not going anywhere. Medium exchange is revenue is in action and obtains an exchange value for goods and services. Unit of account is revenue is exchanged for goods and services, which have not a set price. Standard of deferred payment is a mixture of the other three uses of revenue. These four functions of money are consistently increasing and decreasing by the United States central banking system.

The banking system that is used by the United States is called the central bank controlled via the Federal Reserve Bank. The Federal Reserve Bank is regularly checks out the economic health of the United States to maintain the monetary police to help it become steadfast. The Federal Reserve three tools of monetary policies to aid in the balance of the United States economy are discount policy, open market, and reserve requirement. The three tools, which are at the Federal Reserve disposal help the central bank to regulate the supply and demand, and to alter the level of deposits made into banks accounts.

The Federal Reserve’s watches very closely at the direction of the economy because of the very low and slow recovery of the economy the Federal Open Markets (FOMC) committee has changed the way one maintains federal funding rate. “At the end of June the Federal Reserve concluded its purchases of long-term Treasury securities under the $600 billion purchase program announced in November 2010; that program was undertaken to support the economic recovery and help insure the inflation, over time, returns to level consistent with the FOMC’s mandate of maximum employment, and price stability” according to the website Federal Reserve.com (2011). The committee realizes in June of this year it would check more regularly on the bulk and amount of one’s holdings of securities and to alter the bulk of said holdings to allow the support the very most in job holdings

Because the FOMC is set to return a monthly amount of one more dollar of Treasury securities purchased on June 30, 2012, it is up to the Federal Reserve to determine what is available for purchases of a specified number of fiscal or other monetary instruments in those markets, and whether such purchases are consistent with the Fed’s policy goals for the current economic climate. The committee shall include in its reports every quarterly report that provides the FOMC with the amount of each of the fiscal or other monetary purchases made that fall through the current fiscal year after the date that are due at the Fed. If that amounts do not meet the FOMC�s requirements, the committee may impose additional restrictions and may increase or decrease or increase additional duties or interest, or require a refund to the Federal Reserve, or other financial system authorities, regarding the purchases and the amounts of those in such markets. <> The Committee believes that, to the extent one is required by statute, one in each market of the Fed should, at the end of June, file such a report, with this notice of the Commission and any appropriate agency, as necessary to give notice of the committee’s decision, including but not limited to, at the rate provided by this rule. The reports shall incorporate material changes in Federal Reserve policy by the Fed, such as the timing of such changes, the nature of payments and, for economic activity, the amount and quality of the Federal Reserve’s currency for the fiscal period following the fiscal adjustment of Federal funds, the timing of the beginning of fiscal adjustment of Federal funds, the role of the FOMC, and the extent to which the FOMC has taken part and was active during fiscal 2011. The report shall also contain a description of any changes to the dollar that would have resulted from the adjustments or were made. If the Commission determines that the monetary policies that fall within the scope of the Report are consistent with the mandate of the FOMC then it shall issue the following order before the date such order is in effect: (i) That the FOMC issue any final order issued on June 30, 2012 that meets those requirements under clauses (i) and (ii) of this order. (ii) It shall hold hearings of at least 60 days, within the period provided in §18.7(d), at which the Commission shall file with the Commission not fewer than two written reports that include the following information: (A) The number of purchases made under the FOMC�s purchase program under that program as of June 30, 2012

(B) The financial market activity of the Fed, and any other relevant information relating to the Fed for fiscal years 2008 through 2012

C) The total daily average amount of Treasury securities purchased during the period by Fed officers in the Treasury securities category. Based on the fiscal year data of the FOMC, interest rates of those officers have varied significantly by Fed officers from 5.75% in 2009 to 9.75% in 2011. In May of this year, the Fed adopted price stability guidelines based on the FOMC�s purchasing practices at the time a Fed officer ceased to hold Treasury treasury securities. This is not only important to make them more stable, it is to protect the monetary and financial stability of the Fed by setting a target which would not affect the monetary and financial stability of consumers in time of downturns or if monetary and