Introduction to Federal Reserve System and Monetary Policy 2025
In this lesson on Federal Reserve System, you will learn the following concepts:
*What is The Federal Reserve System?
*Where does Fed policy take place?
*Who sits on the Board of Governors of the Fed and what are its responsibilities?
*Who sits on the FOMC and what is its responsibility?
*What is The Federal Reserve System?
*Where does Fed policy take place?
*Who sits on the Board of Governors of the Fed and what are its responsibilities?
*Who sits on the FOMC and what is its responsibility?
| Board of Governors of the Federal Reserve System |
The maximum number of board members is seven, but there are times when there are fewer board
members. As of July 2025, there are seven members of the Board of Governors of the Federal Reserve
System which is the maximum number of members; yet sometimes this number can be smaller.
members. As of July 2025, there are seven members of the Board of Governors of the Federal Reserve
System which is the maximum number of members; yet sometimes this number can be smaller.
| FOMC (Federal Open Market Committee) of the Federal Reserve System |
The maximum number of committee members on the FOMC is 12, but there can be fewer committee members. As of
October 1, 2025, the maximum number of members (12 committee members) sit on the FOMC.
October 1, 2025, the maximum number of members (12 committee members) sit on the FOMC.
Scroll the short text below to see the duties and responsibilities of the Federal Reserve Board Members.
| Steven M. Reff Economics Lecturer University of Arizona (2007 - 2016) The 2015 University of Arizona Five-Star Faculty Award |
Currency is issued through the 12 Federal Reserve Regional banks. If you look at the two, one dollar
bills below, you can see that the first dollar was issued from the New York Regional Bank (see the
#2 next to the letter B which is the second letter of the alphabet) and the second dollar was issued
through the San Francisco Regional Bank (see the #12 next to the letter L which is the twelve letter
of the alphabet). You can look at your currency and see which Federal Reserve Bank issued it.
bills below, you can see that the first dollar was issued from the New York Regional Bank (see the
#2 next to the letter B which is the second letter of the alphabet) and the second dollar was issued
through the San Francisco Regional Bank (see the #12 next to the letter L which is the twelve letter
of the alphabet). You can look at your currency and see which Federal Reserve Bank issued it.
| Where is the U.S. Central Bank (the Fed) located? |
When I was invited to speak at an Economics
Education conference inside the Eccles Building, I
asked if I could take photos for students throughout
the world to see so they could get a feeling of what
it is like to walk inside the front door, wall down
the hallway, up the marble staircase, and finally walk
inside the Board Room, where a 27-foot mahogany
table dominates the room. My request was accepted.
Click on the slide show below.
Education conference inside the Eccles Building, I
asked if I could take photos for students throughout
the world to see so they could get a feeling of what
it is like to walk inside the front door, wall down
the hallway, up the marble staircase, and finally walk
inside the Board Room, where a 27-foot mahogany
table dominates the room. My request was accepted.
Click on the slide show below.
Scroll the short text below to read about the duties and responsibilities of the members of the Federal Open Market Committee.
Again, the FOMC meets eight times a year (or more in case of an emergency). Financial markets keep track of
these dates as they will give investors the direction of interest rates (up, down, or stay the same) and the direction
of monetary policy (expansionary, contractionary, or wait and see).
these dates as they will give investors the direction of interest rates (up, down, or stay the same) and the direction
of monetary policy (expansionary, contractionary, or wait and see).
FOMC meeting dates: https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
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| What is the Federal Reserve System? |
The Federal Reserve, also known as the Fed, is the central bank of the United States. One of the best ways to
describe the Fed is by remembering that it is the "the bank for depository institutions small and large."
The Federal Reserve Act of 1913, signed into law by President Woodrow Wilson, provides a more stable and
flexible financial system. Click on the document below if you are interested reading the entire Act.
describe the Fed is by remembering that it is the "the bank for depository institutions small and large."
The Federal Reserve Act of 1913, signed into law by President Woodrow Wilson, provides a more stable and
flexible financial system. Click on the document below if you are interested reading the entire Act.
The current Federal Reserve building in
Washington, D.C., the Eccles Building, is named after
Marriner S. Eccles, who served as Chairman of the
Federal Reserve from 1934 to 1948. This building
serves as the headquarters for the Board of Governors
of the Federal Reserve System.
Washington, D.C., the Eccles Building, is named after
Marriner S. Eccles, who served as Chairman of the
Federal Reserve from 1934 to 1948. This building
serves as the headquarters for the Board of Governors
of the Federal Reserve System.
| The Federal Reserve -- Who We Are |
Click on the photo below to watch a 3 and 1/2-minute video on the Three Key Entities of the Fed.
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On the map below, find where you live, click on the map, and you will be directed to
another tab window to learn more about your Federal Reserve Regional Bank.
another tab window to learn more about your Federal Reserve Regional Bank.
Included on the Federal Open Market Committee (FOMC) are:
*The Chairman of the Federal Reserve (1)
*The remaining Board of Governors (6)
*The President of the New York Federal Reserves (1)
*Four other 11 Reserve Bank presidents who serve one-year terms on a rotating basis (4)
*The Chairman of the Federal Reserve (1)
*The remaining Board of Governors (6)
*The President of the New York Federal Reserves (1)
*Four other 11 Reserve Bank presidents who serve one-year terms on a rotating basis (4)
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In 2019, the initial estimated renovation cost was
$1.9 billion. By the time construction is completed in
late 2026, the estimated construction cost is $2.5 billion.
$1.9 billion. By the time construction is completed in
late 2026, the estimated construction cost is $2.5 billion.
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| The 12 District Banks of the Federal Reserve System |
Here is additoinal information about when your District Bank President will serve or has served on the FOMC (2021 - 2050):
https://www.stlouisfed.org/open-vault/2022/nov/fomc-voting-rotation-explained
https://www.stlouisfed.org/open-vault/2022/nov/fomc-voting-rotation-explained
If you are interested in learning more about each member of the Board of Governors of the Federal Reserve
System, click on each individual's photo below.
System, click on each individual's photo below.
Jeffry R. Schmid
President
Federal Reserve
Bank of Kansas City
President
Federal Reserve
Bank of Kansas City
Austan D. Goolsbee
President
Federal Reserve
Bank of Chicago
President
Federal Reserve
Bank of Chicago
Alberto G. Musalem
President
Federal Reserve
Bank of St. Louis
President
Federal Reserve
Bank of St. Louis
Susan M. Collins
President
Federal Reserve
Bank of Boston
President
Federal Reserve
Bank of Boston
Jerome H. Powell
Chairman
Chairman
Philip N. Jefferson
Vice Chairman
Vice Chairman
Michelle Bowman
Michael S. Barr
Stephen I. Miran
Lisa D. Cook
Christopher J. Waller
John C. Williams
President
Federal Reserve
Bank of New York
President
Federal Reserve
Bank of New York
The Chairman of the Fed and the other six Board of Governors (shown in the photos above) serve on the FOMC, along with the
individuals' photos below -- the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve
Bank presidents (shown in the photos below), who serve a one-year term on a rotating basis.
individuals' photos below -- the president of the Federal Reserve Bank of New York; and four of the remaining eleven Reserve
Bank presidents (shown in the photos below), who serve a one-year term on a rotating basis.
If you are interested in learning more about the remaining members of the FOMC, click on each individual's photo below.
Click on the YouTube photo or link below to see an overview of what you are going to learn about
monetary policy. The speakers in this video work at the Board of Governors of the Federal Reserve
System and was produced by the Fed. (3 minutes)
monetary policy. The speakers in this video work at the Board of Governors of the Federal Reserve
System and was produced by the Fed. (3 minutes)
In this lesson on Federal Reserve System, you will learn the following concepts:
*What is The Federal Reserve System?
*Where does Fed policy take place?
*Who sits on the Board of Governors of the FED and what are its responsibilities?
*Who sits on the FOMC and what is its responsibility?
*What is The Federal Reserve System?
*Where does Fed policy take place?
*Who sits on the Board of Governors of the FED and what are its responsibilities?
*Who sits on the FOMC and what is its responsibility?
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