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The Pros And Cons Of The Federal Reserve System

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Introduction

The central bank of the United States was founded by Congress to provide a safe, flexible and stable monetary and financial system. The Federal Reserve carries out the nation’s monetary strategy guided by the goals set forth in the Federal Reserve Act, namely "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates." The central bank, also known as the Federal Reserve System is made of a central governmental agency in Washington, DC, the Board of Governors and 12 regional Federal Reserve Banks in major cities throughout the United States.
Body
In 1913 President Woodrow Wilson signed the Federal Reserve Act into law. Originally, the president and congress sought the need for a central bank after the financial panic of 1907. The Panic of 1907 was a six-week stretch of runs on banks in New …show more content…

For instance you may here the statement that other banks and nations owns the Federal Reserve Bank. According to Brooks Jackson, there are actually 12 different Federal Reserve Banks around the country, and they are owned by big private banks. But the banks don’t necessarily run the show. Nationally, the Federal Reserve System is led by a Board of Governors whose seven members are appointed by the president and confirmed by the Senate. It’s hard to believe that a democratic nation like the United States can have it Federal Reserve System control by other countries. Another statement you may hear is that the Federal Reserve is bankrupt. According to the government’s own numbers show that official liabilities, including debt held by the public and federal retirement benefits, total $20.7 trillion. However, the government’s assets, including the value of the entire federal highway system, the national parks, cash balances, etc. totals just over $3 trillion. In total, their ‘net worth’ is negative $17.7 trillion. You can be the

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