U.S. Federal Reserve (FED)

Official website of the Federal Reserve: http://www.federalreserve.gov/

[Edit this paragraph] U.S. Federal Reserve Introduction to the Reserve Board

The Federal Reserve System (Fed) is responsible for performing the duties of the central bank of the United States. This system was established in 1913 under the Federal Reserve Act. . This system mainly consists of the Federal Reserve Board, the Federal Reserve Bank and the Federal Open Market Committee.

Main Responsibilities

1. Formulate and be responsible for implementing relevant monetary policies;

2. Supervise banking institutions and protect consumers’ legitimate credit rights ;

3. Maintain the stability of the financial system;

4. Provide reliable financial services to the U.S. government, the public, financial institutions, foreign institutions, etc.

[Edit this paragraph] Federal Reserve Board

The core institution of the Federal Reserve System is the Federal Reserve Board (Federal Reserve Board, referred to as the Federal Reserve; its full name is The Board of Governors of The The Federal Reserve System (the Board of Governors of the Federal Reserve System, also known as the Board of Governors of the Federal Reserve System) is a federal government agency with its office located in Washington, D.C., United States. The committee is composed of seven members (including one chairman and one vice-chairman, and five members). They must be nominated by the President of the United States and approved by the Senate, the upper house of the U.S. Congress, before they can take office. The term of office is fourteen years (the terms of the chairman and vice-chairman are for four years, renewable).

[Edit this paragraph] Basic functions of the Federal Reserve

1. Through three main means (open market operations, stipulating bank reserve ratios, and approving discounts required by each Federal Reserve Bank) rate) to implement relevant monetary policies;

2. Supervise and guide the activities of each Federal Reserve Bank;

3. Supervise domestic banks in the United States, as well as the overseas activities of member banks and Activities of foreign banks in the United States;

4. Approve the budget and expenditures of each Federal Reserve Bank;

5. Appoint three of the nine directors of each Federal Reserve Bank;

6. Approve the candidates for the Reserve Bank President nominated by the Board of Directors of each Federal Reserve Bank;

7. Exercise the rights as the national payment system;

8. Responsible Implementation of relevant laws protecting consumer credit;

9. In accordance with "Humphrey. According to the provisions of the Humphrey Hawkins Act, a report on the implementation of economic and monetary policies (similar to a semi-annual report) is submitted to Congress on February 20 and July 20 each year;

10. Through various Publications publish detailed statistics on the Federal Reserve System and the country's economic performance to the public, such as through the monthly Federal Reserve Bulletin;

11. Report to Congress at the beginning of each year Submit the annual report for the previous year (subject to audit by a public accounting firm) and budget report (subject to audit by the U.S. General Accounting Office);

12. In addition, the chairman of the committee needs to meet with the President of the United States regularly Convene relevant meetings with the Minister of Finance and report relevant situations in a timely manner, and perform their responsibilities in international affairs.

[Edit this paragraph] Federal Reserve Banks

The Federal Reserve Bank Regions are 12 Federal Reserve banks established by Congress as the central operating force of the country’s banking system, in accordance with the 1913 The Federal Reserve Act passed by Congress divided the country into 12 reserve districts and established a Federal Reserve Bank branch in each district. Each regional reserve bank is a legal entity with its own board of directors. Member banks are private banks in the United States. Except for National Bank, which must be a member bank, the other banks' participation is entirely voluntary. When joining the Federal Reserve System, the system provides guarantees for the private deposits of member banks, but they must pay a certain amount of deposit reserves. On this part of the funds, the Federal Reserve System does not pay interest.

Before Clinton ran for president, the Federal Reserve had already used monetary policy as the "only lever" to regulate the economy, that is, determining the money supply as the main means of regulating the economy, and formally decided every six The money supply target is revised monthly. In July 1993, Federal Reserve Chairman Alan Greenspan suddenly announced that in the future, real interest rates would be the main means of macro-control of the economy. This was due to the great changes in the investment methods of American society and the large amount of liquidity. It is difficult to be included in the money supply. The inevitable link between money supply and economic growth is broken, so a "neutral" monetary policy keeps interest rates neutral. It neither stimulates nor inhibits the economy, allowing the economy to grow at its own potential growth rate under low inflation expectations. Further examination. The Federal Reserve uses the actual annual economic growth rate as the main criterion as the main basis for adjusting interest rates, and all policy arrangements are based on reverse thinking as the basic starting point. The Federal Reserve believes that the average annual growth rate of the U.S. labor force is 1.5% and the average annual growth rate of productivity is 1%. Therefore, the potential annual economic growth rate of the United States is believed to be about 2.5%. The main task of the Federal Reserve is to adjust interest rates to increase the annual economic growth rate. Basically stable at around 2.5%. to relieve inflation concerns.

[Edit this paragraph] Federal Open Market Committee

The Federal Open Market Committee (FOMC).

The Federal Open Market Committee is another important agency in the Federal Reserve System. It consists of twelve members, including: seven members of the Federal Reserve Board, the President of the Federal Reserve Bank of New York, and the other four positions are held by the presidents of the other 11 Federal Reserve Banks on a rotating basis. The committee has a chairman (usually the chairman of the Federal Reserve Board) and a vice chairman (usually the president of the New York Federal Reserve Bank). In addition, all other federal reserve bank presidents can participate in discussions of the Federal Open Market Committee. meeting, but without voting rights.

The main job of the Federal Open Market Committee is to use open market operations (one of the main monetary policies) to affect the currency reserves in the market to a certain extent. In addition, it is also responsible for determining the growth range of the monetary aggregate (that is, the amount of currency newly put into the market) and guiding the activities of the Federal Reserve Bank in the foreign exchange market.

The committee's major decisions are made through discussion meetings and votes. They hold eight regular meetings in Washington, D.C. every year, and their meeting schedule is made available to the public every year. In normal times, relevant matters are mainly negotiated through telephone conferences. Of course, special meetings can also be held when necessary.

[Edit this paragraph] Introduction to the U.S. Federal Reserve

The U.S. Federal Reserve (FED) is the highest monetary policy authority in the United States and is responsible for the custody of commercial bank reserves and loans to commercial banks. and the issuance of Federal Reserve Notes. FED*** is organized into three levels, with the highest level being the Board of Governors, followed by the 12 Federal Reserve Banks and the member banks of each Reserve Bank.

The U.S. Federal Reserve adopts "independence" and "checks and balances" as its basic principles. In terms of checks and balances, the seven directors of the bureau (including the chairman and vice-chairman) are all nominated by the president and must be approved by the Senate.

For monetary policy decisions, such as raising or lowering the rediscount rate, a collegial and voting system is adopted, with one person, one vote, and a "recorded vote." The chairman's vote usually goes to the party that already holds the majority. Although the president can control the nomination of directors, chairman and vice-chairman, once approved by the Senate, the term is up to fourteen years, and he may serve up to five presidents.

As for independence, the FED is best known for its personnel independence and budget independence. In addition to the Board of Governors, it also has the Federal Open Market Operations Committee (FOMC), which is responsible for longer-term monetary decisions and based on Conduct foreign exchange operations according to the foreign exchange guiding principles, authorization operations for foreign exchange operations and foreign exchange operating procedures.

Due to the strong position of the US dollar in the international currency market, the U.S. Federal Reserve's intervention in the foreign exchange market has particularly attracted the attention of the foreign exchange market. When the yen surges due to the trade surplus, if the Bank of Japan wants to successfully intervene in the currency market, it would be best to obtain assistance and cooperation from the Federal Reserve.

The Federal Reserve is also the leading agency for formulating U.S. monetary policy. Since October 1993, the U.S. economic boom has risen rapidly, threatening to cause inflation. Thanks to Alan Greenspan, who was also the current chairman of the Federal Reserve Board of Governors at the time. (Green Spain), regardless of public opinion and political pressure, raised the rediscount rate seven times in a row, successfully making a soft landing for the U.S. economy and avoiding the threat of inflation.

It is not an exaggeration to say that to this day, few economists in China may know that the Federal Reserve is actually a private central bank. The so-called "Federal Reserve Bank" is actually neither a "federal" nor a "reserve", nor is it a "bank". Most Chinese government officials may take it for granted that the U.S. government issues U.S. dollars. The actual situation is that the U.S. government has no right to issue currency at all! After President Kennedy was assassinated in 1963, the U.S. government finally lost its remaining right to issue "silver dollars." If the U.S. government wants to obtain U.S. dollars, it must mortgage the American people's future taxes (treasury bonds) to the private Federal Reserve, which will issue "Federal Reserve Notes", which are "U.S. dollars."

[Edit this paragraph] Others in the United States Federal

For many years, who owns the Federal Reserve has been a closely guarded topic. The Fed itself is always hemming and hawing. Like the Bank of England, the Fed keeps its shareholder status closely guarded.

Rep. Wright Patman has served as chairman of the House Banking and Currency Committee for 40 years. During 20 of those years, he has continuously proposed proposals to abolish the Federal Reserve. He has also been trying to find out Who actually owns the Federal Reserve. This secret was finally discovered. After nearly half a century of research, Eustace, the author of "Secrets of the Federal Reserve", finally obtained the 12 original business licenses (Organization Certificates) of the Federal Reserve Bank, which clearly recorded each Share composition of the Federal Reserve Bank.

The Federal Reserve Bank of New York is the actual controller of the Federal Reserve System. The document it filed with the Comptroller of the Currency on May 19, 1914 recorded a total of 203,053 shares issued, including: Rockefeller and National City Bank of New York, the predecessor of Citibank, controlled by Kuhn Lebo Company, holds the largest share, holding 30,000 shares; JP Morgan's First National Bank owns 15,000 shares; when these two After the company merged into Citibank in 1955, it owned nearly a quarter of the shares of the Federal Reserve Bank of New York. It actually decided the candidate for the chairman of the Federal Reserve. The appointment of the President of the United States was just a rubber stamp, and congressional hearings were more Like a show going through the motions.

Paul Warburg's National Bank of Commerce of New York City owns 21,000 shares; Hanover Bank, where the Rothschild family is a director, owns 10,200 shares; Chase National Bank owns 6,000 shares; Chemical Bank owned 6,000 shares; these six banks held a total of 40% of the Federal Reserve Bank of New York's shares, and by 1983 they owned a total of 53%. After adjustment, their shareholding ratio is: Citibank 15, Chase Manhattan 14, Morgan Guaranty Trust 9, Manufacturers Hanover (Manufacturers Hanover) 7, Hanover Bank (Chemical Bank) 8.

The registered capital of the Federal Reserve Bank of New York is US$143 million. Whether the above-mentioned banks have paid this money is still a mystery. Some historians believe they paid only half in cash, others believe they paid no cash at all, but only paid by check, with only a few digit changes in the accounts they owned at the Federal Reserve. That’s it. The operation of the Federal Reserve is actually to “use paper as collateral to issue paper.” No wonder some historians ridicule the Federal Reserve Bank system as neither a "federal" nor a "reserve" nor a bank.

On June 15, 1978, the U.S. Senate Government Affairs Committee (Government Affairs) released a report on the interlocking interests of major U.S. companies. The report showed that the above-mentioned banks owned 130 major U.S. companies. Of the 470 directorships, an average of 3.6 directorships per major company belong to bankers. Among them, Citibank controls 97 board seats; JP Morgan controls 99; Hanover Bank controls 96; Chase Manhattan controls 89; Hanover Manufacturing controls 89.

On September 3, 1914, the New York Times announced the share composition of the major banks when the Federal Reserve sold shares: the City National Bank of New York issued 250,000 shares, and James Stillman owned 47,498 shares; JP Morgan Company 14,500; William Rockefeller 10,000 shares; John Rockefeller 1,750 shares; New York National Bank of Commerce issued 250,000 shares, George Baker owned 10,000 shares; JP Morgan Company 7,800 shares; Mary Harriman 5,650 shares; Paul. Warburg 3,000 shares; Jacob Scheff 1,000 shares, and J.P. Morgan Jr. 1,000 shares. Chase Bank, George Baker owns 13,408 shares. Hanover Bank, James Stillman owns 4,000 shares; William Rockefeller owns 1,540 shares.

Since the establishment of the Federal Reserve in 1913, irrefutable facts have shown that bankers control the financial lifeline, industrial and commercial lifeline, and political lifeline of the United States. This has been the case in the past and is still the case today. These Wall Street bankers maintain close ties with the Rothschild family in London.

The Little-Known Federal Advisory Committee

The Federal Advisory Committee is a secret remote control device carefully designed by Paul Warburg to control the Federal Reserve Board of Directors. In the more than 90 years of operation of the Federal Reserve, the Federal Advisory Committee has done an excellent job in realizing Paul's idea. Almost no one has paid attention to this institution and its operations, and there is not a lot of literature to study.

In 1913, Congressman Glass vigorously promoted the concept of a federal advisory committee in the House of Representatives. He said: "There can be nothing evil in this. Every year (the Federal Reserve Board of Directors) talks four times with the advisory committee of bankers." Secondly, each member represents his or her own district on the Federal Reserve. How could we be more protective of the public's interest than this arrangement?" Congressman Glass, himself a banker, did not explain or provide any evidence of the history of bankers in the United States. Never protected the public interest.

The Federal Advisory Committee is composed of 12 Federal Reserve regional banks each selecting a representative. It meets with members of the Federal Reserve Board of Directors four times a year in Washington. The bankers propose various monetary policy proposals to the Federal Reserve Board of Directors. "The proposal", every banker represents the economic interests of the region, and everyone has the same voting rights. In theory, it is impeccable, but in the fierce and cruel reality of the banking industry, it is a completely different set of "hidden rules." Is it difficult to imagine a small banker in Cincinnati sitting at a conference table with international financial giants like Paul Warburg and Morgan, proposing "monetary policy recommendations" to these giants? Either one of these two giants took a check out of his pocket and crossed it twice and it was enough to bankrupt the little banker. In fact, the survival of each of the small and medium-sized banks in the 12 Federal Reserve regions depends entirely on the blessings of Wall Street's five major banking giants. The five giants deliberately break up large transactions with European banks into pieces and hand them over to their own banks in various places. "Satellite banks" handle it, and "satellite banks" are naturally more obedient in order to obtain these high-return businesses, and the five giants also own shares in these small banks. When these small banks "representing the interests of their respective regions" sit together with the Big Five to discuss U.S. monetary policy, it doesn't take much imagination to know the outcome of the discussion.

Although the "recommendations" of the Federal Advisory Committee are not binding on the decisions of the Fed's directors, the Big Five on Wall Street go to Washington four times a year to not just drink with a few directors of the Federal Reserve. coffee. You know, it would be strange for a busy man like Morgan, who holds directorships in 63 companies, to have their "suggestions" not be considered at all and yet they are still happy to go back and forth.

How debt dollars are "made"

As a non-financial reader, you may need to read the following content repeatedly to fully understand the "money creation process" of the Federal Reserve and banking institutions. ". This is the core "commercial secret" of the Western financial industry.

Since the U.S. government does not have the right to issue currency, but only has the right to issue debt, and then use the national debt to pledge it to the private central bank, the Federal Reserve, in order to issue currency through the Federal Reserve and the commercial banking system, so the source of the U.S. dollar is in the national debt. .

In the first step, Congress approves the scale of national debt issuance. The Ministry of Finance designs national debt into different types of bonds. Those with a maturity of less than one year are called T-Bills (Treasury Bills), and those with a maturity of 2-10 years are called T-Bills. -Notes, 30-year bonds are called T-Bonds. These bonds are auctioned on the open market at different times and with different frequencies. The Treasury Department finally sent all the Treasury bonds that were not sold in the auction to the Federal Reserve, and the Federal Reserve accepted them all. At this time, the Federal Reserve's accounts recorded these Treasury bonds under "Securities Assets" (Securities Assets).

Because Treasury bonds are pledged by the U.S. government against future taxes, they are considered the "most reliable asset" in the world. After the Federal Reserve obtains this "asset", it can use it to generate a liability (Liability), which is the "Federal Reserve Check" printed by the Federal Reserve. This is the key step in “making something out of nothing”. Behind the first check issued by the Federal Reserve, there was no money to support this "blank check."

This is a well-designed and disguised step. Its existence makes it easier for the government to control "supply and demand" when it auctions bonds. The Federal Reserve gets the "interest" on lending money to the government, and the government conveniently obtains currency. But without showing signs of printing a large amount of money. The Federal Reserve, which is clearly a free hand, is actually completely balanced in its accounting accounts. The "assets" of national debt are exactly equal to the "liabilities" of currency. The entire banking system is cleverly wrapped under this shell.

It is this simple yet crucial step that creates the world's greatest injustice. The people's future tax revenue was mortgaged by the government to a private central bank to "lend" dollars. Since it "borrowed" money from the private bank, the government owed huge amounts of interest.

The injustice is reflected in:

First, people's future tax revenue should not be mortgaged, because the money has not been earned yet. Mortgaging the future will inevitably lead to the depreciation of currency purchasing power, thus hurting people's savings.

Second, the people’s future tax revenue should not be mortgaged to a private central bank. Bankers suddenly have the promise of the people’s future tax revenue without paying almost any money. This is a typical " A white wolf with empty gloves."

Third, the government owes huge amounts of interest for no reason, and these interest payments eventually become a burden on the people. Not only have the people inexplicably mortgaged their future, but they are now immediately required to pay taxes to repay the interest the government owes to the private central bank. The greater the issuance of U.S. dollars, the heavier the interest burden will be on the people, and it will never be repaid for generations to come!

In the second step, when the federal government receives and endorses the "Federal Reserve Check" issued by the Federal Reserve, this magical check is deposited back to the Federal Reserve Bank and transformed into "Government Deposits" ) and is held in the government's account at the Federal Reserve.

In the third step, when the federal government starts spending money, federal checks large and small constitute the "first wave" of money flowing into the economy. Companies and individuals who receive these checks deposit them into their commercial bank accounts, and the money becomes "Commercial Bank Deposits". At this time, they present a "dual personality". On the one hand, they are liabilities of the bank, because the money belongs to the depositors and must be returned to others sooner or later. But on the other hand, they constitute the bank's "assets" and can be used for lending. From an accounting perspective everything still balances, the same assets constitute the same liabilities. However, commercial banks began to use the high-magnification amplifier of "Fractional Reserve Banking" to prepare to "create" money.

In the fourth step, commercial bank savings are reclassified as "Bank Reserves" in bank accounts. At this time, these savings have been transformed from ordinary "assets" of the bank into "reserves" that serve as seeds for making money. Under the "fractional reserve" system, the Federal Reserve allows commercial banks to retain only 10% of their savings as "reserves" (generally speaking, U.S. banks only retain 1 to 2 of their total savings in cash and 8 to 9 The bills are in their own "treasury" as "reserves"), and the savings of 90 are loaned out. Therefore, the 90% of the money will be used by the bank to extend credit.

There is a problem here. When 90% of the savings are loaned to others, what should the original saver do if he writes a check or uses the money? In fact, when loans occur, these loans are not the original savings, but "new money" created completely out of thin air. This "new money" immediately increases the total amount of money held by banks by 90% compared to the "old money". Unlike "old money", "new money" can bring interest income to banks. This is the “second wave” of money flooding into the economy. When the "second wave" of money returns to commercial banks, more waves of "new money" are created, with the amount showing a decreasing trend. When the "20th wave" ended, one dollar of Treasury bonds, with the close coordination of the Federal Reserve and commercial banks, had created an increment of $10 in currency circulation. If the increment in currency circulation generated by the issuance of national debt and the aftermath of money creation is greater than the needs of economic growth, the purchasing power of all "old money" will decline, which is the fundamental cause of inflation. When the United States added US$3 trillion in national debt from 2001 to 2006, a considerable part of it directly entered currency circulation. Coupled with the redemption of national debt and interest payments many years ago, the result was a sharp depreciation of the US dollar and the collapse of commodities. , real estate, oil, education, medical care, and insurance prices have risen sharply.

However, most of the additional Treasury bonds did not enter the banking system directly, but were purchased by foreign central banks, U.S. non-financial institutions, and individuals.

In this case, these buyers are spending dollars that already exist, so no new dollars are being “created.” Only when the Federal Reserve and U.S. banking institutions purchase U.S. Treasury bonds will new dollars be created, which is why the United States can temporarily control inflation. However, treasury bonds held by non-U.S. banks will mature sooner or later, and interest will also need to be paid half a year (30-year treasury bonds). At this time, the Federal Reserve will inevitably create new dollars.

[Edit this paragraph] The nature of the Federal Reserve

Although the founding of the United States is only a little over 200 years ago, the monetary history alone can be endlessly discussed. Economics master Milton Friedman's classic book "A Monetary History of the United States 1867-1960" has more than 800 pages and only gives an overview of historical fragments, which shows the complexity of economic and monetary history.

In 1791, after the founding of the United States, with the strong support of Hamilton, the then Secretary of the Treasury and a genius, the first central bank was established. However, this central bank disappeared 20 years later. The second central bank, established in 1816, also disappeared in 1836 due to the opposition of then President Jackson. For more than 80 years from that time until 1913, the U.S. economy operated without a central bank.

Without a central bank, appropriate monetary policy cannot be used to regulate the economy. Moreover, without a lender of last resort (Lender of Last Resort), the financial system is more prone to problems. Just imagine, if all the countries in the world lacked central banks, Lehman Brothers would probably be the only one to go bankrupt in this crisis. After 1836, the American economy was in this unstable state. By 1907, the spreading crisis pushed the U.S. financial system to the brink of collapse. Fortunately, J.P. Morgan, the financial giant at the time, took action in time and single-handedly played the role of the central bank and saved the entire system.

Since then, the U.S. government and Congress have felt the need to establish a central bank. Congress passed the Federal Reserve Act in 1913 and President Wilson signed it into law. The Federal Reserve Act authorized the establishment of a central bank, and the Federal Reserve was officially born. This is the first fact to judge whether the Federal Reserve is a private institution: from its inception, the Federal Reserve has been an institution established by national legislation.

However, the Federal Reserve does have the illusion of a private institution. The entire Federal Reserve system consists of the Federal Reserve Board (the Federal Reserve Board) at the core and 12 branches located across the country. These 12 branches are composed of local private commercial banks holding shares. At first glance, the Federal Reserve branches look like joint-stock companies. Why does this happen? This needs to start with the history of the United States.

The author mentioned in a previous article that the birth of the United States was the result of compromise among the 13 former British colonies. Therefore, the DNA of this country is full of compromises between the interests of all parties. The decision to go to war with Britain was the result of compromise and deliberations among the colonies. The birth of the Constitution and the founding of the country was the result of the compromise of the colonial votes after independence. The establishment of the Senate and the House of Representatives was the result of compromise. The Electoral College system was used instead of the popular vote. Coming to elect the president is also the result of compromise. The emergence of the Federal Reserve Act was naturally the result of compromise.

After 1836, the banking industry in the United States was relatively free, and banks were opened everywhere. By 1920, after the Federal Reserve was established, the number of banks in the United States was as high as 30,000, more than the rest of the world combined. How can these banks, which have been free for more than 80 years, easily accept the supervision of the central government?

In the United States, for a bill to be passed, senators and representatives from all over the country need to vote for it. A bill that does not compromise the interests of all places cannot be passed. Each bank has its own senators and representatives as spokespersons. Without a majority of lawmakers agreeing to the bill, the Federal Reserve system will be in trouble.

Thus, just as the Electoral College was designed into the Constitution, the Federal Reserve Act also designed a system of compromise with banks everywhere.

In order to take into account the interests of private banks scattered throughout the country, the bill divided the United States into 12 districts and established 12 Federal Reserve branches. The branch is owned by a local bank, and the branch's board of directors is voted in by the participating banks, and the participating banks can also receive annual dividends. This series of regulations are all designed to take into account local interests. Judging from these regulations, the Federal Reserve system does have the illusion of private ownership.

But there is much more to the bill than meets the eye. The highest authority of the Federal Reserve is the Federal Reserve Board of Governors and the Federal Open Market Operations Committee (FOMC) in Washington. The seven members of the former are all appointed by the President of the United States, including the chairman of the committee. The FOMC is the interest rate decision-making body of the Federal Reserve and consists of 12 members. Among them, 7 members of the Federal Reserve Board are permanent members of the FOMC and have an absolute majority when voting. The other five members of the FOMC are rotated by the Fed branch chairs. It should be pointed out that although branch chairs are selected by participating banks, the Federal Reserve Board has the final veto power over the appointment of branch chairs.

It can be seen that although the Federal Reserve Act compromises with local interests, the core power of the Federal Reserve system is still firmly in the hands of the government. More importantly, although you can get dividends if you invest in a bank, the bill limits the interest rate on dividends to 6 per year. The excess income of the Federal Reserve needs to be transferred to the national treasury. Also, anyone with common sense knows that only government agencies can end with GOV on their websites.

The above shows that, first, the Federal Reserve was an institution established after compromising local interests, and it did have equity privatization; second, the Federal Reserve is formally a private joint-stock company, but it is fundamentally controlled by the U.S. government. Control can be considered as the central bank of the United States; third, the Federal Reserve Act stipulates that the Federal Reserve's responsibility is to maintain the normal operation of the economy and maintain price stability, and it is also serving private companies. The Act also ensures that the Federal Reserve operates independently of the government for the purpose of This makes the government unable to control the central bank's currency issuance and monetary policy to ensure the relative independence of the monetary and financial systems. (It should be noted that the issuance of U.S. currency implements an "issuance mortgage" system, which makes the issuance of Federal Reserve notes a fully guaranteed economic issuance by providing 100 qualified collateral, and at the same time, it is not based on a predetermined limit. Quite flexible. The biggest feature of the U.S. currency issuance system is its strong independence.)