What happen when the Federal interest rates spill out below the current rate of inflation?
Does this have any iminent ramification?Answers: they would raise the interest rate back that happens, but if it does it indicates that the discount is completely out of control.
The money moves to Canada or Mexico where on earth the inflation is lower than the United States of America but they pay high interest rates.
Is the Federal Reserve Bank in any way associated with the US Government?
Answers: Yes, it is associated with the U.S. Government.
The Federal Reserve SYSTEM is setup in accordance to law.
http://www.law.cornell.edu/uscode/html/u...
The Federal Reserve system is controlled by a Board of Governors, which is a 100% government agency. The members of the board are nominated by the President and confirmed by the Senate. Board members are selected for 14 year rotating terms. This is to ensure stability and freedom from political influence. However, it appears that many board members will resign before their terms expire. This is probably because they can make much more money as private economic consultants. Board members cannot be officers, directors, or employees of any bank, banking institution, or trust company.
There are twelve DISTRICT banks, (the district banks are not called member banks). The district banks are "banker's banks". The district banks hold deposits for member institutions, perform check clearing services, assist in electronic fund transfers, etc. As the bank for the U.S. government, Reserve Banks handle the Treasury's payments, sell government securities and assist with the Treasury's cash management and investment activities. Reserve Banks conduct research on regional, national, and international economic issues.
MEMBER banks are private, commercial banks. Approximately 38% of the over 8,000 commercial banks in the U.S. are members of the Federal Reserve system. National banks, like Bank of America, N.A. and National Bank of Arizona, are required by law to become members of the system. State banks may become members if they meet certain requirements. In order to become a member bank, a bank is required to SUBSCRIBE to stock in one of the Federal Reserve district banks. The specific amount of stock a member bank must subscribe to is set to a percentage of the member banks' paid-in capital. The member bank can own no more and no less than this amount. This "stock" is special. It cannot be transferred, sold, or even given away. Additionally, the stock confers no rights of ownership beyond the par value of the stock. The only additional power the stock ownership provides is each member bank gets ONE vote per board member seat of the district bank's board of directors and those voting rights only apply to SIX of the NINE directors. The other three directors are selected by the Board of Governors. Also, the Board of Governors have the final say on any of the selected directors. BTW, private individuals, corporations and foreign governments are not allowed to hold Federal Reserve stock. Also, if a new national bank is formed, the Federal Reserve simply creates new shares to fulfill that new member bank's subscription requirements. If a member bank is dissolved, once the Federal Reserve stock is returned to the Federal Reserve district bank, that stock simply disappears.
The Federal Reserve reports to Congress every year. This is required by law. The Federal Reserve is also required to be independently audited every year. You can view these reports and audits online.
http://www.federalreserve.gov/boarddocs/...
http://www.federalreserve.gov/boarddocs/...
Sort of. You can get the story at their site:
http://www.federalreserve.gov/aboutthefe...
Basically it's one of those neither fish nor foul creations: quasi-public.
The President appoints the members of the Board of the Fed.
There is a Federal Open Market Committee--they oversee the sales and purchase of government securities. They set monetary policy in this case a rate that commercial banks charge on overnight loans to one another. In the foreign exchange market, they must coordinate with the US Treasury Department as they coordinate exchange values of the dollar. The Committee is composed of a dozen people--that's the 7 folks on the Board and 5 of the 12 Fed Reserve bank presidents. The president of the NY bank is ALWAYS a member, the others rotate, serving one year terms. All of those bank presidents attend the meetings which are about every 6 weeks. They have to meet four times minimum in DC. For years they've been meeting more like 8 times a year. They also have teleconferences and such. They formulate directives at the meeting which are carried out by the NY bank that handles the transactions for the System Open Market Account.
Then there are the 12 member banks. They serve as fiscal agents for the US Treasury. Each bank has its own 9 member board.
There are also private US banks which hold non-transferable stock in their region's Fed Reserve bank.
There are advisory councils as well.
So that's why I say sort of--it's a mix.
How to setup a leather shoe factory beside 500 pairs domestic and 500 pairs export ?
how to setup a leather shoe factory with 500 pairs domestic and 500 pairs export ,staff and organisation structure,bits and pieces and communication flow from one department to another and within the factory -factory layoutcontribution plan , profit planning competitor analysis portfolio managemntAnswers: no model