Changes

It was established by the Federal Reserve Act, which was passed by Congress and signed into law by [[President]] [[Woodrow Wilson]] in 1913.  As it describes itself, "the Board is a federal government agency consisting of seven members appointed by the President of the United States and confirmed by the U.S. Senate."<ref>[http://www.ny.frb.org/aboutthefed/fedpoint/fed46.html Board of Governors of the Federal Reserve System] - Fedpoints -  Federal Reserve Bank of New York</ref> The Federal Reserve is a system of private banks, twelve of which are designated as Federal Reserve Banks and have some features of public federal agencies. The Federal Reserve is headed by a Board of Governors and a Chairman. The current Chairman is Jerome Powell, as appointed by President [[Donald Trump]].  Prior chairmen have included [[Alan Greenspan]], appointed by President [[Ronald Reagan]].  

It was established by the Federal Reserve Act, which was passed by Congress and signed into law by [[President]] [[Woodrow Wilson]] in 1913.  As it describes itself, "the Board is a federal government agency consisting of seven members appointed by the President of the United States and confirmed by the U.S. Senate."<ref>[http://www.ny.frb.org/aboutthefed/fedpoint/fed46.html Board of Governors of the Federal Reserve System] - Fedpoints -  Federal Reserve Bank of New York</ref> The Federal Reserve is a system of private banks, twelve of which are designated as Federal Reserve Banks and have some features of public federal agencies. The Federal Reserve is headed by a Board of Governors and a Chairman. The current Chairman is Jerome Powell, as appointed by President [[Donald Trump]].  Prior chairmen have included [[Alan Greenspan]], appointed by President [[Ronald Reagan]].  

One of the main jobs of the Federal Reserve is supposed to be to control [[inflation]] by adjusting the supply of money in the economy, while at the same time maintain the stability of the financial system and promote economic growth. This should be done primarily by setting the interest rates (the "discount rate") for money it lends to banks,<ref>The Fed's lending facility is called the "discount window"</ref> and also by buying and selling government bonds in order to influence banks' cash supply (called "open market operations") and setting the amount of money that banks must keep in reserve.<ref>http://www.federalreserve.gov/pf/pdf/pf_3.pdf</ref> These three major operations are the basis of [[monetary policy]], and are performed by the Fed to target a specific [[Federal Funds Rate]] that it believes will be low enough to ensure available credit and stimulate the economy, but high enough to prevent inflation. The Fed also has the responsibility of supervising and regulating banking institutions.<ref>http://www.federalreserve.gov/generalinfo/mission/default.htm</ref>

One of the main jobs of the Federal Reserve is supposed to be to control [[inflation]] by adjusting the supply of money in the economy, while at the same time maintain the stability of the financial system and promote economic growth. This should be done primarily by setting the interest rates (the "discount rate") for money it lends to banks,<ref>The Fed's lending facility is called the "discount window"</ref> and also by buying and selling government bonds in order to influence banks' cash supply (called "open market operations") and setting the amount of money that banks must keep in reserve ("reserve requirements").<ref>http://www.federalreserve.gov/pf/pdf/pf_3.pdf</ref> These three major operations are the basis of [[monetary policy]], and are performed by the Fed to target a specific [[Federal Funds Rate]] that it believes will be low enough to ensure available credit and stimulate the economy, but high enough to prevent inflation. The Fed also has the responsibility of supervising and regulating banking institutions.<ref>http://www.federalreserve.gov/generalinfo/mission/default.htm</ref>

In 2008 the Fed became a major player in many new ways, taking over several major banks (ostensibly to prevent total economic collapse) and making trillions of dollars in guarantees. See [[Financial Crisis of 2008]].  

In 2008 the Fed became a major player in many new ways, taking over several major banks (ostensibly to prevent total economic collapse) and making trillions of dollars in guarantees. See [[Financial Crisis of 2008]].