Raúl Méndez Axotla

Federal reserve system “FED”

What is its purpose ?

The Federal Reserve System, often referred to as the Federal Reserve or

simply "the Fed," is the central bank of the United States. his principal
object is to provide the nation with a safer, more flexible, and more stable
monetary and financial system.

The FED includes de board of governors is Washington D.C WICH has

seven memebers including the chairman and vice chairman.

All of the members of the board are appointed of the president of the united
states and confirmed by the united states senate-

The fed also includes 12 regional federal reserve banks located in cities
throughout the country.

One of the Fed’s more recognizable functions is conducting u.s monetary

policy. With involves influencing interest rates and the availability of Money
and credit in our economy.

Congress has tasked the fed with implementing monetary policies that
promote maximum employment and stable prices

Monetary policy decisions at the fed are made by the federal open market
committee with includes all seven members of the board of governors and
presidents from de reserve banks

The Fed also promotes stability in the financial system because instability
in the financial system can pose a severe threat to the broader economy
and communities across the nation. The Fed also acts as a bank to other
banks by clearing checks, making electronic payments, and providing the
currency that American's need and use every day.

When was it created ?

It was created by the Congress in 1913 to help promote a safe and sound
monetary and financial system for United States

How was it created ?

From December 1912 to December 1913, the Glass-Willis proposal was

hotly debated, molded and reshaped. By December 23, 1913, when
President Woodrow Wilson signed the Federal Reserve Act into law, it
stood as a classic example of compromise—a decentralized central bank
that balanced the competing interests of private banks and populist
sentiment.

The United States was considerably more unstable financially before the
creation of the Federal Reserve. Panics, seasonal cash crunches and a
high rate of bank failures made the U.S. economy a riskier place for
international and domestic investors to place their capital.

Does it have power to solve administrative procedures? If so, briefly

describe it. If not, Who would solve violations to the regulation of
your chosen entity?

Generally, the Federal Reserve system takes formal enforcement actions

against the above entities and individuals for violations of laws, rules, or
regulations, unsafe or unsound practices, breaches of fiduciary duty, and
violations of final orders. Formal enforcement actions include cease and
desist orders, written agreements, prompt corrective action directives,
removal and prohibition orders, and orders assessing civil money penalties.