Federal Reserve System
The Federal Reserve (also known as The Fed) is a central bank that controls the monetary system of the United States. Although it acts with the authority of the government, the Federal Reserve is not an official government agency. It was established by President Woodrow Wilson in 1914. Although the Constitution says that only Congress has the authority to print money, the Federal Reserve issues currency that is not based on the original gold standard.[1]
The Federal Reserve is headed by a Board of Governors and a Chairman. The current Chairman is Ben Bernanke, his predecessor was Alan Greenspan. The Fed was originally conceived by an organization called the "Money Trust", composed of the richest and most powerful bankers in the world.[1]
The main job of the Federal Reserve is to control inflation by regulating the free market.[2]
References
- ↑ Griffin, G. Edward (1998) The Creature from Jekyll Island: A Second Look at the Federal Reserve, 3rd edition. American Media. ISBN 0-912986-32-8 (hardcover), ISBN 0-912986-21-2 (paperback)