SOCIAL WORK POLITICAL ECONOMY

Social work political economy of the welfare state

Social work political economy of the welfare state

Introduction

The Federal Reserve Board of United States of America is responsible for the prevention and avoiding of unemployment in the country. It is something Similar to the Congress and the policy of president of United States of America for fiscal control. The Federal Reserve System leads the monitory policy including the control of cost and supply for money. The monitory policy of the country greatly impacts on every aspect of the economy. The Fed is assumed to be equal to congress and president of the country in the process of macro economical decision making process.

The Fed's Structure

The Federal Reserve System is composed of a board of directors of seven members situated in Washington, D.C., along with 12 local banks, each one of them is managed by its directors.

The Fed, Federal Reserve System is the central banking system of the United States whose objectives, according to the documentation of the Fed, is to take monetary policy decisions in the country, supervise and regulate banking institutions, maintain the stability of the financial system and provide financial services to depository institutions, the U.S. government and foreign official institutions.

In other words, it is the U.S. Central Bank which was created in 1913 through the Federal Reserve Act (Federal Reserve Act), mainly in response to a series of financial panics, particularly that of 1907.

Structure of the Federal Reserve System

Although the structure, functions and responsibilities of the Fed have varied over time mainly due to events like the Great Depression, the Fed structure consists of public and private components. Notably, it is then necessary to count with public funds and can make decisions without the approval of Congress or the President of the United States. The structural members of the Fed are currently:

Board of Governors (Board of Governors, also known as Federal Reserve Board).

Federal Open Market Committee (FOMC, Federal Market Committee).

12 Federal Reserve Banks (Federal Reserve Banks).

Board of Governors.

The President and Vice President of the Board of Governors are nominated by the President of USA of between 7 previously appointed Governors. Although they may remain the members of the Board of Governors for 14 years, while Vice President and can be exercised up to 4 years.

Federal Open Market Committee (FOMC Federal Open Market Committee)

The Federal Open Market Committee (FOMC) consists of 12 members, seven of the Board of Governors and 5 of the regional presidents of the Federal Reserve Banks. The FOMC oversees open market operations being the main tool of national monetary policy. These operations affect the amount of Federal Reserve balances available to depository institutions, thereby influencing overall resource conditions and credit monitoring.

The FOMC also directs operations undertaken by the Federal Reserve in the forex market. The president of the Federal Reserve of New York is a permanent member of the FOMC, while the rest of the bank presidents rotate at an interval of two to three ...