Federal Reserve System

U.S. central bank system consisting of 12 Federal Reserve districts with a Reserve bank in the principal commercial city of each district. The system is supervised by a board of governors in Washington, D.C., as well as by various advisory councils and committees. As a result of the Federal Reserve Act of 1913, all national banks are required to join the system; state banks may join if they meet membership qualifications. The Federal Reserve is responsible for monetary policy. The original act set fixed reserve requirements for the U.S. fractional reserve banking system. It allowed each district bank to determine its discount rate, the rate it charged on loans to member banks. The modern Federal Reserve resulted from the Federal Reserve Act of 1935, which allowed the board to determine reserve requirements within defined limits. It became responsible for approving the discount rates of the district banks. Most importantly, the act created the Federal Reserve Open Market Committee, which is responsible for conducting operations in financial markets that increase or decrease the amount of reserves in the system. If the Federal Reserve wants to ease monetary policy, it will use open market operations and increase the amount of reserves through the purchase of financial assets. Conversely, it can tighten monetary policy through the sale of financial assets.

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Independent U.S. government corporation created to insure bank deposits against loss in the event of a bank failure and to regulate certain banking practices. Established after the bank holiday in early 1933, the FDIC was intended to restore public confidence in the system. It insures bank deposits in eligible banks up to $100,000 for each deposit. All members of the Federal Reserve System are required to insure their deposits with the FDIC, and almost all commercial banks in the U.S. choose to do so.

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Largest investigative agency of the U.S. government. It was founded in 1908 as the Bureau of Investigation within the U.S. Justice Department. J. Edgar Hoover served as its director from 1924 until his death in 1972. Since 1968 the director, who reports to the attorney general, has been appointed by the president for a 10-year term, subject to Senate approval. The FBI employs more than 10,000 special agents. Its responsibilities include investigating violations of federal criminal law (including in the areas of civil rights and organized crime), collecting evidence in civil cases to which the U.S. is a party, and providing internal security.

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In politics:

• Central gernment, the common level of government of a federation
• Federal constitutional monarchy, a federation of monarchies or a federal organised monarchy
• Federal district, a subdivision under the direct control of a federal government
• Federal government
• Federal government of the United States
• United States federal law
• United States federal courts
• Union (American Civil War)
• Federal republic, a federation of republics
• Federation, a union of states
• Federalism, a political philosophy
• Government of Australia
• Government of Canada
• Government of Russia
• Union Government (Central Government) of India

Other:

• Federal architecture, an architectural style related to Georgian architecture
• Federal, the debut album by Vallejo, California rapper E-40
• Federal (Amtrak), a passenger train providing an overnight Boston-Washington, D.C. service in 2003 and 2004
• Federal Cartridge, American ammunition manufacturer
• Federal Coach, American limousine and bus manufacturer
• Federal Records, a subsidiary label of King Records
• Federal Reserve, central bank of the United States