金融市场与机构_英文版_第四章

Fed’s Influence on Economy
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Fed influences liquidity (supply of loanable funds) in money market to influence:
Liquidity, Money Supply and Interest Rates
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Supervise and regulate member banks and bank holding companies Oversight of 12 Fed district banks Establish consumer finance regulations after Congressional legislation
Monetary Policy Tools
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Adjusting the discount rate
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Depository institutions borrow from Fed for three reasons:
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Hale Waihona Puke Adjustment credit for short-term reserve deficiencies Seasonal credit to agricultural banks Extended credit for longer-term liquidity problems of problem banks
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Three appointed by Board of Governors Three professional bankers Three business persons in district
Organization of the Federal Reserve
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Member Banks
Organization of the Federal Reserve
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Board of Governors
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7 individuals appointed by the U.S. president and confirmed by the Senate U.S. president appoints one of the 7 chair whose 4-year term is renewable Offices in Washington, D.C. Serve nonrenewable 14-year terms Independence of Federal Reserve
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Structure of the Federal Reserve System
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12 Fed District Banks Member Commercial Banks 7 Members of Board of Governors 14 year terms for Governors 12 Open Market Committee (FOMC) Members Advisory Committees to Fed from private sector
Organization of the Federal Reserve
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Establish and effect monetary policy
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Direct control over two tools of monetary policy
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Set reserve requirements Approve discount rate set by district banks
Federal Reserve System: Third U. S. Central Bank
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First Bank of the United States (1791–1811)
Second Bank of the United States (1816–1836) Federal Reserve System (1913–)
Functions of the Federal Reserve System
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Effect Monetary Policy U.S. Central Bank In International Area Fiscal Agent of U.S. Treasury Facilitate Efficient Payments System Regulate Banks and Bank Holding Co. Enforce Consumer Credit Laws
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Shifts supply of federal funds to the right Lowers federal funds rate Lower rates spread to other money market securities
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More funds available for money market and bank lending
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12 members
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7 from the Board of Governors President of the New York Fed 4 other district bank presidents appointed on a rotating basis Other presidents participate but do not vote on monetary policy matters
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Staggered terms of Governors Budget separate from Congress
Organization of the Federal Reserve
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Board of Governors has two main functions: Regulate commercial banks
Organization of the Federal Reserve
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Federal Open Market Committee (FOMC)
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Monetary policy goals of:
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high employment price stability economic growth
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Business and Consumer Borrowing/Spending
Goals of Growth Price Stability Job Growth
Tools of Monetary Policy
Open Market Op.
Tools of Monetary Policy Reserve Req. Discount Rate
How Fed Controls Money Supply
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Banks must maintain reserves as percent of deposits Reserves kept as deposits in Fed (plus vault cash) Fed controls level of member bank reserve deposits in Fed Fed influences bank deposit portion of money supply
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Purchase securities from government securities dealers Increase bank deposits and bank reserves, money market liquidity and, in time… Increases the money supply
Exhibit 4.4
Increase in deposits at banks $100 million Required reserves held on new deposits $10 million Funds received from new deposits that can be lent out $90 million
Organization of the Federal Reserve
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Federal Reserve District Banks
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12 districts Districts divided by population at 1912–13 District bank size related to economic wealth of district District banks owned by private member banks Board of Directors of district banks
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Indirect control in a third area
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Governors are members of the Federal Open Market Committee
Organization of the Federal Reserve
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Federal Open Market Committee (FOMC) meets every 6 weeks
CHAPTER
4
The Fed and Monetary Policy
© 2003 South-Western/Thomson Learning
Chapter Objectives
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Identify the Fed’s role in monetary policy Describe the tools the Fed uses to influence monetary policy Explain how changes in regulation in the 1980s affected the Fed and monetary policy