About

The Board of Governors is responsible for making key decisions that impact monetary policy, the regulation and supervision of banks, and the stability of the financial system. The Board consists of seven members who are appointed by the President of the United States and confirmed by the Senate. Members serve staggered terms of 14 years to ensure independence from political pressures. The Chair of the Board is appointed by the President for a four-year term. The primary function of the Board is to set monetary policy by determining the target interest rate, known as the federal funds rate. They do this through the use of open market operations, buying or selling government securities to adjust the supply of money in the economy. Additionally, the Board of Governors is responsible for overseeing and regulating banks and financial institutions to ensure their safety and soundness. They establish and enforce regulations to protect consumers and maintain the stability of the financial system. The Board also plays a role in promoting financial stability through monitoring of the overall economic conditions, assessing risks to the system, and coordinating with other regulatory agencies. The Federal Reserve Board of Governors is an integral part of the central banking system in the United States, and its decisions and actions have significant impacts on the economy and the financial well-being of individuals and businesses.