the federal reserve the federal reserve the central bank of the united states
TRANSCRIPT
The Federal Reserve
The Federal ReserveThe Central Bank of the United States
The Federal Reserve
Main job: to regulate or “control” the size of the supply of money,
the total amount of money in circulation
http://www.youtube.com/watch?v=rUzrMfDKI-E(2:30 into the clip see making of money)
Q: Who is the current Chairman of the Federal
Reserve?
Oh! Oh! That’s me! Ben
Bernanke!
http://video.aol.com/video-detail/cnbccom-fed-chairman-ben-bernanke-testimony/3007286962(testifying before House committee) (16:27)
http://video.aol.com/video-detail/ben-bernanke-holds-qandampa-session/3681234450 (good Q & A session) (20:44)
http://www.youtube.com/watch?v=usiFU3FEv9w(Ron Paul confronts Bernanke) (3:32)
How & Why is the Fed independent?
• Congress wanted Fed to make best decisions possible, even if contrary to public opinion
• Governors serve for year term
• Funding: no money from Congress; operating expenses paid from interest on the assets it holds
I’m indepen-
dent
Federal Reserve Structure
Meets 8 times a year to vote on Monetary Policy
Federal Reserve
Board of Governors
(7 members)
Ben BernankeChairman
Federal Open Market Committee= 7 Governors + 5 District Bank Presidents—meets 8 timesper year
12 District FederalReserve Banks
BostonSan FranciscoNew YorkAtlantaChicagoDallas, etc.
Member Banks
All national banks
Some state banks
Federal Funds Rate = Interest ratethat the 12 District banks charge Each other on overnight loans
Discount Rate=Interest rate that the Fed lends money directly to District Banks
(rarely used) SF Fed Building—Market Street
Hi! Remember me, Ben
Bernanke!
Now that you know what our Chairman looks like, it’s time to play a short round
of…
Can YOU Spot Him?
Great Job!
There he is!
BEN BERNANKE?
Ben Bernanke is too busy dealing with the economic crisis; he doesn’t have time to go to the carnival!
Video
Ben Bernanke Interview on 60 Minutes 3/22/09
--during the segment write down three observations, opinions and/or interesting facts learned
http://www.cbsnews.com/stories/2009/03/12/60minutes/main4862191.shtml60 Minutes—Ben Bernanke Interview Part I (13:24)60 Minutes—Ben Bernanke Interview Part II (13:14)