Tuesday, October 28, 2025

The Federal Reserve Meets on Wednesday to Set Interest Rates

Federal Reserve Signals Upcoming Rate Cuts! Markets are now | Crypto Master 786 on Binance Square

INFORMATION (USA FACTS)

How is the Fed structured?
The Federal Reserve operates through three entities: the Federal Open Market Committee (FOMC), the Federal Reserve Banks, and the Board of Governors.

The Federal Open Market Committee (FOMC)
The FOMC is made up of the seven members of the Board of Governors (see below) and five of the 12 regional Federal Reserve Bank presidents. The Committee meets eight times per year and is probably the most recognized part of the Fed.
FOMC has three Congressionally mandated goals: maximizing employment, stable prices, and moderate long-term interest rates. Its main tools are the power to set targets for the federal funds rate, which influences interest rates throughout the economy, and quantitative easing.

The Federal Reserve Banks
There are 12 Federal Reserve Banks throughout the country, and each bank covers a district made up of at least one state.
Within its territory, a Reserve Bank carries out Federal Reserve functions, such as tailoring interest rates and policy decisions to their areas and supervising state member banks. They also enforce compliance with fair-lending and consumer protection laws, distribute currency to banks, and issue and redeem US government securities.

The Board of Governors
The Board of Governors is made up seven members who are nominated by the president and confirmed by the Senate. They supervise all five of the Fed’s key functions, oversee the 12 regional Federal Reserve Banks, and help create financial regulations. Although members are nominated by the president, the Fed itself is an independent organization.
Board members serve staggered 14-year terms. From among them, the president appoints a Chair and a Vice Chair, each serving a separate four-year term in those leadership roles.

How is the Fed funded?
As a fully operational bank, the Federal Reserve has assets. It doesn’t get money from taxpayers or Congressional appropriations; it's a financially self-sustaining entity. The Fed Reserve buys Treasury-backed securities in the open market and earns money via interest on those securities, as well as through fees on services like check clearing and funds transfers.

As of March 2025, the Federal Reserve had $6.6 trillion in total assets. Its holdings have exceeded $6.0 trillion since April 8, 2020, when it used quantitative easing to buy up several trillion from other banks.