Federal Reserve System

The Federal Reserve System is a quasi-governmental banking system composed of (1) a presidentially-appointed Board of Governors of the Federal Reserve System in Washington, D.C.; (2) the Federal Open Market Committee; (3) 12 regional Federal Reserve Banks located in major cities throughout the nation; and (4) numerous private member banks, which own varying amounts of stock in the regional Federal Reserve Banks. Ben Bernanke serves as the current Chairman of the Board of Governors of the Federal Reserve System.

[edit] History

Main article: History of central banking in the United States

From 1862 to 1913, a system of national banks was instituted by the 1863 National Banking Act. A series of bank "panics", in 1873, 1893, and 1907 provided renewed calls for the creation of a centralized banking system.

After the Panic of 1907, Congress created the National Monetary Commission to draft a plan for reform of the banking system. Senate Republican leader and financial expert Nelson Aldrich was the head of the Commission. Aldrich made an in-depth study of European central banks. In 1910, with the help of the nation's leading bankers he wrote a comprehensive new reform plan that would give the U.S. a centralized banking system resembling that of Germany and Britain. Aldrich, along with executives representing the J.P. Morgan, Rockefeller, and Kuhn, Loeb, & Co. interests, secluded themselves for a week at Jekyll Island. There, Paul Warburg of Kuhn, Loeb, & Co. directed the proceedings and devised the primary features of the Federal Reserve Act. Aldrich then presented his plan for a Central Bank as the "Aldrich Bill", which called for the establishment of the "National Reserve Association." It became a part of the Republican platform, but was defeated in 1911 by a Democratic Congress.

It took the political influence of Democratic President Woodrow Wilson to get the Aldrich plan passed in 1913 under Democratic auspices. Frank Vanderlip, one of the Jekyll Island attendees and the President of National City Bank wrote in his autobiography that "although the Aldrich Federal Reserve Plan was defeated when it bore the name Aldrich, nevertheless its essential points were all contained in the plan that was finally adopted." Wilson won over William Jennings Bryan, the leader of the agrarian wing of the party. The agrarians wanted a government-owned central bank which could print paper money whenever Congress wanted; Wilson convinced them that because Federal Reserve notes were obligations of the government, the plan fit their demands. Southerners and westerners learned from Wilson that the system was decentralized into 12 districts and surely would weaken New York and strengthen the hinterlands. (In practice, the Federal Reserve Bank of New York became "first among equals". The New York Fed, for example, is solely responsible for conducting open market operations, at the direction of the Federal Open Market Committee.) One key Democratic Congressman, Carter Glass, was given credit for the bill, and his home of Richmond, Virginia, was made a district headquarters. Democratic Senator James A. Reed of Missouri obtained two districts for his state. ^[1]

Congress passed the Federal Reserve Act in late 1913. Wilson named Warburg and other prominent experts to direct the new system, which began operations in 1915 and played a major role in financing the Allied and American war efforts.^[2]

In Jul. 1979, Paul Volcker was nominated, by Pres. Carter, as Chairman of the Federal Reserve Board amid roaring inflation; under his leadership, anti-inflation methods would change, and inflation fell dramatically by 1986. In Oct. 1979, the Federal Reserve announced a policy of "targeting" money aggregates and bank reserves in its struggle with double-digit inflation. Source: A Monetary Chronology of the United States, American Institute for Economic Research, July 2006.

In Jan. 1987, with C.P.I. inflation down to only 1%, the Federal Reserve announced it was no longer going to use money supply aggregates, such as M2, as guidelines to control inflation, even though this method had been in use from 1979, apparently with great success. Previous to 1980, interest rates were used as guidelines; inflation was heavy. The Fed complained that the aggregates were confusing; Volcker was still chairman till Aug. 1987, whereupon Alan Greenspan assumed the mantle, 7 months after monetary aggregate policy had changed. Source: A Monetary Chronology of the United States, American Institute for Economic Research, July 2006.

[edit] Legal status and position in government

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The Federal Reserve System was created via the Federal Reserve Act of December 23rd, 1913. The Reserve Banks opened for business on November 16th, 1914. Federal Reserve Notes were created as part of the legislation, to provide a supply of currency. The notes were to be issued to the Reserve Banks for subsequent transmittal to banking institutions. The various components of the Federal Reserve System have differing legal statuses.

The Board of Governors of the Federal Reserve System is an independent federal government agency. ^[3] The Board of Governors does not receive funding from Congress, and the terms of the seven members of the Board span multiple presidential and congressional terms. Once a member of the Board of Governors is appointed by the president, he or she functions mostly independently. The Board is required to periodically report to the Senate. The law provides for the removal of a member of the Board by the President "for cause."^[4] The Board of Governors is responsible for the formulation of monetary policy. It also supervises and regulates the operations of the Federal Reserve Banks, and US banking system in general.

The Federal Reserve Banks are owned by private member banks (see below). Each member bank owns nonnegotiable shares of stock in its regional Federal Reserve Bank; see below). In Lewis v. United States,^[5], the United States Court of Appeals for the Ninth Circuit stated that "the Reserve Banks are not federal instrumentalities for purposes of the FTCA [the Federal Tort Claims Act], but are independent, privately owned and locally controlled corporations." The opinion also stated that "the Reserve Banks have properly been held to be federal instrumentalities for some purposes." [2] Another decision is Scott v. Federal Reserve Bank of Kansas City^[6]in which the distinction between the Federal Reserve Banks and the Board of Governors is made.

The member banks are privately owned corporations. The stocks of many of the member banks are publicly traded.

[edit] Roles and responsibilities

According to the Board of Governors, the main tasks of the Federal Reserve System are:

conducting the nation’s monetary policy by influencing the monetary and credit conditions in the economy in pursuit of maximum employment, stable prices, and moderate long-term interest rates
supervising and regulating banking institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers
maintaining the stability of the economy and containing systemic risk that may arise in financial markets
providing financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation’s payments system

[edit] Organization

Federal Reserve headquarters, Eccles Building, Washington, DC.

The basic structure of the Federal Reserve System includes:

The Federal Reserve Board of Governors

The Federal Open Market Committee

The Federal Reserve Banks

The member banks.

Each privately owned Federal Reserve Bank and each member bank of the Federal Reserve System is subject to oversight by a Board of Governors.^[7] The seven members of the board are appointed by the President and confirmed by the Senate.^[8] Members are selected to terms of 14 years (unless removed by the President), with the ability to serve for no more than one term. However, if someone is appointed to serve the remainder of an uncompleted term of another member, they may be reappointed to serve one additional 14 year term.^[9] A governor may serve the remainder of another governor's term in addition to his or her own full term.

The current members of the Board of Governors are:

(*Because appointments of members are staggered there are only six members currently on the board.)

The Federal Open Market Committee (FOMC) created under 12 U.S.C. § 263 comprises the 7 members of the board of governors and 5 representatives selected from the Federal Reserve Banks. The representative from the 2nd District, New York, (currently Timothy Geithner) is a permanent member, while the rest of the banks rotate on two and three year intervals.

[edit] Control of the money supply

The Federal Reserve System controls the size of the money supply by conducting open market operations, in which the Federal Reserve lends or purchases specific types of securities with authorized participants, known as primary dealers. All open market operations in the United States are conducted by the Open Market Desk at the Federal Reserve Bank of New York, with an aim to making the federal funds rate as close to the target rate as possible. For a detailed look at the process by which changes to a reserve account held at the Fed affect the wider monetary supply of the economy, see money creation.

The Open Market Desk has two main tools to adjust the monetary supply: repurchase agreements and outright transactions.

[edit] Repurchase agreements

To smooth temporary or cyclical changes in the monetary supply, the desk engages in repurchase agreements (repos) with its primary dealers. Repos are essentially secured, short-term lending by the Fed. On the day of the transaction, the Fed deposits money in a primary dealer’s reserve account, and receives the promised securities as collateral. When the transaction matures, the process unwinds: the Fed returns the collateral and charges the primary dealer’s reserve account for the principal and accrued interest. The term of the repo (the time between settlement and maturity) can vary from 1 day (called an overnight repo) to 65 days, though the Fed will most commonly conduct overnight and 14-day repos.

Since there is an increase of bank reserves during the term of the repo, repos temporarily increase the money supply. The effect is temporary since all repo transactions unwind, with the only lasting net effect being a slight depletion of reserves caused by the accrued interest (think one day of interest at a 4.5% annual yield, which is 0.0121% per day). The Fed has conducted repos almost daily in 2004-05, but can also conduct reverse repos to temporarily shrink the money supply.

In a reverse repo, the Fed will borrow money from the reserve accounts of primary dealers in exchange for Treasury securities as collateral. At maturity, the Fed will return the money to the reserve accounts with the accrued interest, and collect the collateral.

[edit] Outright Transactions

The other main tool available to the Open Market Desk is the outright transaction. In an outright purchase, the Fed buys Treasury securities from primary dealers and finances the purchases by depositing newly created money in the dealer’s reserve account at the Fed. Since this operation does not unwind at the end of a set period, the resulting growth in the monetary supply is permanent. That is to say that the principal growth is permanent but a yield on maturity of the security is still charged this is usually at 12 - 18 months on outright transaction.

The Fed also has the authority to sell Treasuries outright, but this has been exceedingly rare since the 1980s. The sale of Treasury securities results in a permanent decrease in the money supply, as the money used as payment for the securities from the primary dealers is removed from their reserve accounts, thus working the money multiplier (see Money creation) process in reverse.

On Outright Transactions the Desk selects bids with the highest prices (lowest yields) for its sales, and offers with the lowest prices (highest yields) for its purchases.

[edit] Implementation of monetary policy

Buying and selling federal government securities. When the Federal Reserve System buys government securities, it puts money into circulation. With more money around, interest rates tend to drop, and more money is borrowed and spent. When the Fed sells government securities, it in effect takes money out of circulation, causing interest rates to rise and making borrowing more difficult.

Regulating the amount of money that a member bank must keep in hand as reserves. A member bank lends out most of the money deposited with it. If the Federal Reserve System says that a member bank must keep in reserve a larger fraction of its deposits, then the amount that the member bank can lend drops, loans become harder to obtain, and interest rates rise.

Changing the interest charged to banks that want to borrow money from the federal reserve system. Member banks borrow from the Federal Reserve System to cover short-term needs. The interest that the Fed charges for this is called the discount rate; this will have an effect, though usually rather small, on how much money the member banks will borrow.

[edit] Discount rates

The effective federal funds rate charted over fifty years

The Federal Reserve System implements monetary policy largely by targeting the federal funds rate. This is the rate that banks charge each other for overnight loans of federal funds, which are the reserves held by banks at the Fed. This rate is actually determined by the market and is not explicitly mandated by the Fed. The Fed therefore tries to align the effective federal funds rate with the targeted rate by adding or subtracting from the money supply through open market operations. Milton Friedman has consistently criticized this reverse method of controlling inflation by seeking an ideal interest rate and enforcing it through affecting the money supply since nowhere in the widely accepted money supply equation are interest rates found.

The Federal Reserve System also directly sets the discount rate, which is the interest rate that banks pay the Fed to borrow directly from it. However, banks usually prefer borrowing fed funds from other banks, even at a higher interest rate, rather than directly from the Fed, because that might suggest problems with the bank's credit-worthiness or solvency.

Both of these rates influence the prime rate which is usually about 3 percentage points higher than the federal funds rate. The prime rate is the rate at which most banks price their loans for their best customers.

Lower interest rates stimulate economic activity by lowering the cost of borrowing, making it easier for consumers and businesses to buy and build. Higher interest rates slow the economy by increasing the cost of borrowing. (See monetary policy for a fuller explanation.)

The Federal Reserve System usually adjusts the federal funds rate by 0.25% or 0.50% at a time. From early 2001 to mid 2003 the Federal Reserve lowered its interest rates 13 times, from 6.25 to 1.00%, to fight recession. In November 2002, rates were cut to 1.75, and many interest rates went below the inflation rate. (This is known as a negative real interest rate, because money paid back from a loan with an interest rate less than inflation has lower purchasing power than it had before the loan.) On June 25, 2003, the federal funds rate was lowered to 1.00%, its lowest nominal rate since July, 1958, when the overnight rate averaged 0.68%. Starting at the end of June, 2004, the Federal Reserve System started to raise the target interest rate 17 straight times. The rate is 5.25% as of August 8, 2006; the Fed elected to keep the rate steady on its August 8 meeting after seventeen straight 0.25% increases. Rates also remained unchanged after the September 20, 2006 and October 25, 2006 FOMC meetings.

The Federal Reserve System might also attempt to use open market operations to change long-term interest rates, but its "buying power" on the market is significantly smaller than that of private institutions. The Fed can also attempt to "jawbone" the markets into moving towards the Fed's desired rates, but this is not always effective.

[edit] The Federal Reserve Banks and the member banks

The 12 regional Federal Reserve Banks (not to be confused with the "member banks"), which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations—possibly leading to some confusion about “ownership.” For example, the Reserve Banks issue shares of stock to "member banks." However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock by a "member bank" is, by law, a condition of membership in the system. The stock may not be sold or traded or pledged as security for a loan; dividends are, by law, limited to 6% per year.[3] The largest of the Reserve Banks, in terms of assets, is the Federal Reserve Bank of New York, which is responsible for the Second District covering the state of New York, the New York City region, Puerto Rico, and the U.S. Virgin Islands.

The dividends paid by the Federal Reserve Banks to member banks are considered partial compensation for the lack of interest paid on member banks' required reserves held at the Federal Reserve Banks. By law, banks in the United States must maintain fractional reserves, most of which are kept on account at the Fed. The Federal Reserve does not pay interest on these funds.

The basic structure of the Federal Reserve System includes:

The Board of Governors
The Federal Open Market Committee
The Federal Reserve Banks
The member banks.

Each Federal Reserve Bank and each member bank of the Federal Reserve System is subject to oversight by the Board of Governors (see generally 12 U.S.C. § 248). The 7 members of the board are appointed by the President and confirmed by the Senate.^[10] Members are selected to terms of 14 years (unless removed by the President), with the ability to serve for no more than one term.^[11] A governor may serve the remainder of another governor's term in addition to his or her own full term.

[edit] The Federal Reserve Banks

The Federal Reserve Districts are listed below along with their identifying letter and number. These are used on Federal Reserve Notes to identify the issuing bank for each note.

Federal Reserve Bank	Letter	Number	Website
Boston	A	1	[4]
New York	B	2	[5]
Philadelphia	C	3	[6]
Cleveland	D	4	[7]
Richmond	E	5	[8]
Atlanta	F	6	[9]
Chicago	G	7	[10]
St Louis	H	8	[11]
Minneapolis	I	9	[12]
Kansas City	J	10	[13]
Dallas	K	11	[14]
San Francisco	L	12	[15]

[edit] The member banks

National banks are required to be member banks in the Federal Reserve System. Federal statute provides (in part):

Every national bank in any State shall, upon commencing business or within ninety days after admission into the Union of the State in which it is located, become a member bank of the Federal Reserve System by subscribing and paying for stock in the Federal Reserve bank of its district in accordance with the provisions of this chapter and shall thereupon be an insured bank under the Federal Deposit Insurance Act [ . . . . ]"^[12]

Other banks may elect to become member banks. According to the Federal Reserve Bank of Boston:

Any state-chartered bank (mutual or stock-formed) may become a member of the Federal Reserve System. The twelve regional Reserve Banks supervise state member banks as part of the Federal Reserve System’s mandate to assure strength and stability in the nation’s domestic markets and banking system. Reserve Bank supervision is carried out in partnership with the state regulators, assuring a consistent and unified regulatory environment. Regional and community banking organizations constitute the largest number of banking organizations supervised by the Federal Reserve System.[16]

For example, as of October 2006 the member banks in New Hampshire included Community Guaranty Savings Bank; The Lancaster National Bank; The Pemigewasset National Bank of Plymouth; and other banks.[17] In California, member banks (as of September 2006) included Bank of America California, National Association; The Bank of New York Trust Company, National Association; Barclays Global Investors, National Association; and many other banks.[18]

[edit] Regulation of fractional reserve

The Fed regulates banks' fractional reserves—the portion of their deposits that banks must keep, on hand or at the Fed, as reserves to satisfy any demands for withdrawal. This directly affects the banks' ability to make loans, since loans cannot be made out of reserves. The United States' rules and oversight are within limits and guidelines set by the Bank for International Settlements, a banking agency which pre-dates the Bretton Woods financial and monetary system and its institutions.

[edit] Criticisms

Critics charge that a cult of personality surrounded Alan Greenspan

A large and varied group of criticisms have been directed against the Federal Reserve System. One group of criticisms, typified by the Austrian School, criticize the Federal Reserve as unnecessary and counterproductive interference in the economy. Other arguments include libertarian arguments in favor of the gold standard and criticisms of an alleged lack of accountability or culture of secrecy within the Reserve. Finally, various groups and individuals make claims—rejected by the great majority of scholars and historians on the subject—that one or more large scale conspiracies operate to conceal the true nature of the Federal Reserve System from the public; most commonly they claim that the Federal Reserve System is actually a scheme to enrich a few wealthy bankers at the expense of the public.

[edit] Historical criticisms

Criticisms of the Federal Reserve System are not new, and some historical criticisms are reflective of current concerns.

At one end of the spectrum are economists from the Austrian School and the Chicago School who want the Federal Reserve System abolished.^{[citation needed]} They criticize the Federal Reserve System’s expansionary monetary policy in the 1920s, arguing that the policy allowed misallocations of capital resources and supported a massive stock price bubble.

Milton Friedman, leader of the Chicago School, argued that the Federal Reserve System did not cause the Great Depression, but made it worse, by contracting the money supply at the very moment that markets needed liquidity.^{[citation needed]} Friedman argued that the Federal Reserve System could and should be replaced by a computer system that sets rates calculated from standard economic metrics.^{[citation needed]}

[edit] Opacity

Another criticism of the Federal Reserve System is that it is shrouded in excessive secrecy. Meetings of some components of the Fed are held behind closed doors, and the transcripts are released with a lag of 5 years. Even expert policy analysts are unsure as to the logic behind Fed decisions. Critics argue that such opacity leads to greater market volatility, as the markets must guess, often with only limited information, about how the Fed is likely to change policy in the future. The jargon-laden fence-sitting opaque style of Fed communication is often called "Fed speak."

It has also been known to be standoffish in its relations with the media in an effort to maintain its carefully crafted image and resents any public information that runs contrary to this notion. For example, Maria Bartiromo reported on CNBC that during a conversation at the White House Correspondents’ Dinner in April 2006, Fed Chairman Ben Bernanke stated investors had misinterpreted his recent congressional remarks as an indication the Fed was nearly done raising rates. This triggered a drop in stock prices just as the market was about to close. (see e.g. [19] [20] [21])

Furthermore, the lag in the release of FOMC transcripts, as well as the extremely limited and carefully worded minutes and statement, leads to the public being unaware of the issues of major concern to the Fed, and leaves it with an inadequate understanding of the logic and rationale behind the decisions. Some argue that this is a concerted attempt to keep Congress and the public at arm’s length.

[edit] Business cycles, libertarian philosophy and free markets

Economists of the Austrian School such as Ludwig von Mises contend that the Federal Reserve's artificial manipulation of the money supply leads to the boom/bust business cycle that has occurred over the last century. Many economic libertarians, such as Austrian School economist Murray Rothbard, believe that the Federal Reserve's manipulation of the money supply to stop "gold flight" from England caused, or was instrumental in causing, the Great Depression. In general, laissez-faire advocates of free banking argue that there is no better judge of the proper interest rate and money supply than the market. Nobel Economist Milton Friedman said he "prefer[s] to abolish the federal reserve system altogether."^[13]. Ben Bernanke, Chairman of the Board of Governors of Federal Reserve, stated: "I would like to say to Milton [Friedman] and Anna [J. Schwartz]: Regarding the Great Depression. You're right, we did it. We're very sorry. But thanks to you, we won't do it again." [22] [23]

[edit] Allegations of conspiracies & secret agendas

In his book, The Creature from Jekyll Island: A Second Look at the Federal Reserve, author G. Edward Griffin argues that "the Federal Reserve Bank" was organized in secret at a conspiracy of financiers.

Masters of the Universe: The Secret Birth of the Federal Reserve is a 1999 documentary featuring authors Michael Collins Piper, William Gill, and Eustace Mullins, all of whom contend that "The Fed" is illegal and is the source of America's multi-trillion dollar national debt.

America: Freedom to Fascism is a 2006 motion picture of a similar nature. It was produced and directed by Aaron Russo, who contends that the Federal Reserve enslaves Americans. The film asserts that the Federal Reserve System is a system of privately held, for-profit corporations, and was commissioned to print fiat money on behalf of the federal government, at a fee ultimately paid for by the personal income tax. The film also claims that the U.S. Congress has never enacted a statute authorizing the collection of the income tax, and that any laws cited as the authority for the income tax are actually regulations adopted under an unspecified statute (in the United States, "statutes" are enacted by Congress, and "regulations" are promulgated by the executive branch of government to implement the statutes). The film claims that the U.S. Congress has no control or oversight over the Federal Reserve, and hence has no control over the value of U.S. money. It argues that Congressional control over the value of money is required by Article 1, Section 8 of the United States Constitution^[14] and it calls for action to abolish the Federal Reserve.

Karl Steinhauser claims that the Federal Reserve System prints Federal Reserve Notes and "lends" them to the government of United States at high interest rates, that this is the sole purpose and function of the Federal Reserve, and that the Federal Reserve does not produce any products or provide any services in exchange for charging interest. He describes this as a theft from "honest and hard working laborers". He claims that the total amount of interest so collected from 1913 to 1964 totalled $310 billion. ^[15]

[edit] Bibliography

[edit] Recent

Epstein, Lita & Martin, Preston (2003). The Complete Idiot's Guide to the Federal Reserve. Alpha Books. ISBN 0-02-864323-2.
Greider, William (1987). Secrets of the Temple. Simon & Schuster. ISBN 0-671-67556-7; nontechnical book explaining the structures, functions, and history of the Federal Reserve, focusing specifically on the tenure of Paul Volcker
R. W. Hafer. The Federal Reserve System: An Encyclopedia. Greenwood Press, 2005. 451 pp, 280 entries; ISBN 4-313-32839-0.
Meyer, Lawrence H (2004). A Term at the Fed: An Insider's View. HarperBusiness. ISBN 0-06-054270-5; focuses on the period from 1996 to 2002, emphasizing Alan Greenspan's chairmanship during the Asian financial crisis, the stock market boom and the financial aftermath of the September 11, 2001 attacks.
Woodward, Bob. Maestro: Greenspan's Fed and the American Boom (2000) study of Greenspan in 1990s.

[edit] Historical

J. Lawrence Broz; The International Origins of the Federal Reserve System Cornell University Press. 1997.
Vincent P. Carosso, "The Wall Street Trust from Pujo through Medina," Business History Review (1973) 47:421-37
Chandler, Lester V. American Monetary Policy, 1928-41. (1971).
Epstein, Gerald and Thomas Ferguson. "Monetary Policy, Loan Liquidation and Industrial Conflict: Federal Reserve System Open Market Operations in 1932." Journal of Economic History 44 (December 1984): 957-84. in JSTOR
Milton Friedman and Anna Jacobson Schwartz, A Monetary History of the United States, 1867-1960 (1963)
G. Edward Griffin, The Creature from Jekyll Island: A Second Look at the Federal Reserve (1994) ISBN 0-912986-21-2; Says Fed was created by a conspiracy of bankers; his other books charge Franklin Rooosevelt intentionally brought about Pearl Harbor.
Paul J. Kubik, "Federal Reserve Policy during the Great Depression: The Impact of Interwar Attitudes regarding Consumption and Consumer Credit." Journal of Economic Issues . Volume: 30. Issue: 3. Publication Year: 1996. pp 829+.
Link, Arthur. Wilson: The New Freedom (1956) pp 199-240. Explains how Woodrow Wilson managed to pass the legislation.
Livingston, James. Origins of the Federal Reserve System: Money, Class, and Corporate Capitalism, 1890-1913 (1986), Marxist approach to 1913 policy
Mayhew, Anne. "Ideology and the Great Depression: Monetary History Rewritten." Journal of Economic Issues 17 (June 1983): 353-60.
Meltzer, Allan H. A History of the Federal Reserve, Volume 1: 1913-1951 (2004) the standard scholarly history
Roberts, Priscilla. "'Quis Custodiet Ipsos Custodes?' The Federal Reserve System's Founding Fathers and Allied Finances in the First World War," Business History Review (1998) 72: 585-603
Rothbard, Murray N. A History of Money and Banking in the United States: The Colonial Era to World War II (2002) libertarian who wants no Fed
Rothbard, Murray N. (1994). The Case Against the Fed. Ludwig Von Mises Institute. ISBN 0-945466-17-X. libertarian who wants no Fed
Bernard Shull, "The Fourth Branch: The Federal Reserve's Unlikely Rise to Power and Influence" (2005) ISBN 1-56720-624-7
Steindl, Frank G. Monetary Interpretations of the Great Depression. (1995).
Temin, Peter. Did Monetary Forces Cause the Great Depression? (1976).
West, Robert Craig. Banking Reform and the Federal Reserve, 1863-1923 (1977)
Wicker, Elmus R. "A Reconsideration of Federal Reserve Policy during the 1920-1921 Depression," Journal of Economic History (1966) 26: 223-238, in JSTOR
Wicker, Elmus. Federal Reserve Monetary Policy, 1917-33. (1966).
Wells, Donald R. The Federal Reserve System: A History (2004)
Wicker, Elmus. The Great Debate on Banking Reform: Nelson Aldrich and the Origins of the Fed Ohio State University Press, 2005.
Wood, John H. A History of Central Banking in Great Britain and the United States (2005)
Wueschner; Silvano A. Charting Twentieth-Century Monetary Policy: Herbert Hoover and Benjamin Strong, 1917-1927 Greenwood Press. (1999)
Mullins, Eustace C. "Secrets of the Federal Reserve," 1952. John McLaughlin. ISBN 0-9656492-1-0

[edit] Notes

^ A Foregone Conclusion: The Founding of the Federal Reserve Bank of St. Louis by James Neal Primm - stlouisfed.org - Retrieved January 1, 2007
^ Arthur Link, Wilson: The New Freedom; pp. 199-240 (1956).
^ http://www.ca8.uscourts.gov/opndir/05/04/042357P.pdf
^ 12 U.S.C. § 242.
^ 680 F.2d 1239 (9th Cir. 1982).
^ [[1]]
^ See generally 12 U.S.C. § 248.
^ See 12 U.S.C. § 241.
^ See 12 U.S.C. § 242.
^ See 12 U.S.C. § 241.
^ See 12 U.S.C. § 242.
^ 12 U.S.C. § 222.
^ Friedman and Freedom, Interview with Peter Jaworski. The Journal, Queen's University, March 15, 2002 - Issue 37, Volume 129
^ Wikisource copy of the Constitution of the United States of America, Section 8
^ Karl Steinhauser: EU - huomispäivän super-Neuvostoliitto, ISBN 951-97105-0-7

[edit] Other prominent banking institutions

[edit] See also

[edit] External links

Official Federal Reserve websites and information:
- Board of Governors of the Federal Reserve — Official website
- "The Federal Reserve System in Brief." — at the Federal Reserve Bank of San Francisco.
- Federal Reserve System Meeting Notices and Rule Changes from The Federal Register RSS Feed
Other websites describing the Federal Reserve:
- "How 'The Fed' Works" — at HowStuffWorks.com
Sites making various allegations against the Federal Reserve:
- "America: Freedom to Fascism" — Aaron Russo's web site, promoting his film, America: Freedom to Fascism.
  - "America: From Freedom to Fascism" (video) — Online video of the film.
- "Our Banking History, the Story of the Privately Owned Federal Reserve System" — A page at the web site of the "Federal Debt Relief System" that purports to "[examine the] historical evolution of the privately owned central banking system" [i.e., the Federal Reserve System] and show how that system "insures [sic.] a lifetime of feudal-like, debt-based enslavement."
- "Ownership of Federal Reserve" — Web page at The Lawful Path.com purporting to show how the Bank of England and the Rothschilds own the Federal Reserve.
- "On the Federal Reserve" — Web page at the Populist Party of America with a collection of articles giving various arguments against the Federal Reserve
- "Secrets of the Federal Reserve" — Web page offering anti-Fed literature and videos.
- "The Money Masters"
- Ludwig von Mises Institute:
  - "The Founding of The Federal Reserve" (video)
  - "Money, Banking and the Federal Reserve" (video) — According to the Mises Institute, this video shows "what the [Federal Reserve] does to the economy . . . how and why it was founded . . . [and explains] the sound money and banking that could end the statism, inflation, and business cycles that the Fed generates."
- save-a-patriot.org; tax protester web site contending that the Federal Reserve System is owned by banking family, Bank of England, and London banking houses

http://demopedia.democraticunderground.com/index.php/Federal_Reserve_System

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