The Federal Reserve makes America tick from a banking aspect, as it is the central banking system of the country. The Federal Reserve is ruled by the Board of Governors, which is made up of members nominated by the President of the United States and then confirmed by the U.S. Senate. These members must collectively maintain a fair representation of the diversity of the country including unique financial, industrial, and commercial interests.

 

On December 23, 1913, the Federal Reserve was created in response to several financial scares. Events over time have led to the expansion of responsibilities and role of the department as a whole, in particular the Great Depression of the 1930s. Today, the department oversees all banking activity on a high level in the country and aims to maintain stability as well as promote forward growth to boost the economy.

 

Also known as “the Fed,” the Federal Reserve has 12 regional banks that are each responsible for a specific area of the United States. And while the President names the members of the Board of Governors, the decisions do not need to be ratified by the President therefore allowing the department to be independent.