Federal Reserve System

Private banking system

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The Federal Reserve System, or the Federal Reserve, is a private enterprise in the United States central bank^[15] , responsible for fulfilling the responsibilities of the Central Bank of the United States. This system is based on《 Federal Reserve Act 》(Federal Reserve Act) was established on December 23, 1913. The core management organization of the Federal Reserve is the Federal Reserve Board of the United States.^[1]

The Federal Reserve System of the United States is composed of Washington DC It is composed of the Federal Reserve Board and 12 regional Federal Reserve Banks in major cities of the country. Jerome Powell He is the current top governor of the Federal Reserve (chairman of the Federal Reserve Board of the United States). As the central bank of the United States, the Federal Reserve obtains power from the United States Congress to exercise its responsibilities of formulating monetary policies and supervising American financial institutions.

The Federal Reserve is the largest holder of the United States federal debt, which is a strict secret to shareholders.^[15] In 2020, the net profit of the Federal Reserve will reach 88.8 billion US dollars.^[25] By the end of March 2022, the total assets will be 9 trillion US dollars.

Chinese name: Federal Reserve System
Foreign name: The Federal Reserve System
Headquarters: Washington, USA

Date of establishment: 1913
Nature: central bank
Current Chief Executive: Jerome Powell^[2]
Abbreviation: Federal Reserve

catalog

▪ limitations
five Source of income
six Schedule of interest rate increase
seven Schedule of interest rate reduction
eight Emergency plan

nine Current leaders
ten Violations

Historical evolution

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The Federal Reserve System of the United States is the central bank of the United States. Compared with the central banks of other countries, the Federal Reserve as the central bank of the United States was born relatively late. Historically, the United States has tried many times to establish a central bank like the Federal Reserve, but because legislators and presidents worry that the central bank has too much power, or the central bank will be minority interest group Kidnapping without success. This fear is mainly caused by the United States State form Determined. At the beginning of the founding of the People's Republic of China, the United States was a loose organization composed of some independent states in the form of a federation administrative power Mainly concentrated in the state government, rather than federal government 。 Therefore, the idea of establishing such a federal institution as the Central Bank will arouse the vigilance of the states, who are worried that the federal government wants to expand its scope of power in this name.^[3]

First Bank of America

The first Treasury Secretary of the United States Alexander Hamilton Alexander Hamilton American Revolutionary War After that, it proposed to the Congress to establish a national bank. Mainly responsible for helping American states Issuance of bonds To gradually repay debts accumulated during the Revolutionary War. In addition, the bank can also help to keep the deposits of the Ministry of Finance and deal with other federal government financial revenues and expenditures. Hamilton's proposal was strongly opposed at that time. Opponents mainly worry about these three aspects: First, such a national bank has more than other banks competitive edge Will cause it to be in private banking business Monopoly on; Second, the bank exceeded Constitution of the United States Prescribed federal authority; Third, the establishment of national banks will weaken the power of state governments. Despite Hamilton's strong opposition, in 1791 Philadelphia The First Bank of the United States was successfully established, but the Congress only approved the First Bank to operate for 20 years. After 20 years, it must be approved by the Congress, First Bank Can continue to exist.

The First Bank of the United States is not the central bank in the modern sense, it is still a private commercial bank in fact. First Bank, like other banks, absorbs deposits and issues deposits from depositors Commercial loans 。 In addition, the First Bank was established in the form of a joint-stock system, and its shares were publicly sold in the market Shareholders of listed companies Dividends will also be distributed to determine how the First Bank will operate. The difference is that other commercial banks belong to the state banks, while the First Bank of the United States is a national bank that conducts business in the United States, and the First Bank is a US Treasury The bank providing services.

In addition to being a private commercial bank, the first bank also had a big hard injury, that is, about 70% of its equity belonged to foreigners, mainly Europeans at that time. This makes many Americans worry that First Bank is a tool for European financial families to control the United States. So 1811, the 20th year of the First Bank Business Term After that, the Congress did not approve its continued existence, and the First Bank was forced to close.

Second Bank of the United States

In 1812, Britain and the United States fought again. Due to the lack of an effective central banking system and a unified national financial market In the United States, state banks were in chaos. In order to restore banking order and deal with war debts, the United States once again considered establishing a central bank similar to the First Bank. 1816 by US Congress The vote was passed, and President Madison signed the bill to establish Second Bank of the United States （The Second Bank of the United States）。

and First Bank Similarly, the Second Bank is closer to a national commercial bank than a modern central bank. Similarly, Congress only issued a 20-year license to the Second Bank. When the license expires, it must be approved by Congress before it can continue to exist.

because Commercial competition The Second Bank was strongly opposed by the banks in the state after its establishment. Its opponents claimed that the Second Bank only helped businessmen and rich people in the economically developed areas of the eastern United States, rather than occupying U.S. Population Most farmers serve. This kind of propaganda pushed the Second Bank into a very isolated position in public opinion. In the seventh presidential election of the United States, Andrew Jackson Andrew Jackson's opponent supported Second Bank. In 1833, when Jackson became President, he fulfilled his campaign promise and transferred all the deposits of the Ministry of Finance to the state bank, which weakened the reason for the continued existence of the Second Bank. In this case, the license of the Second Bank failed to pass the approval of the Congress after the 20-year period expired. In 1836, Second Bank of the United States It was forced to close down after repeating the mistakes of the First Bank.

Free financial period

More than 70 years after the closure of the Second Bank of the United States, U.S. government No more attempts have been made to establish an institution similar to the central bank. During this period, the US financial market experienced a laissez faire development. However, with the continuous expansion of the financial market, the shortcomings of the laissez faire banking system are increasingly exposed, Bank run Market collapse often occurs. In 1873, 1884 1890 In 1893 and 1907, there were large-scale bank failures caused by bank runs financial crisis 。 Especially in the crisis of 1893, more than 500 banks in the United States collapsed one after another, and many people's life savings could be said to have been lost overnight.

The financial crisis not only caused huge wealth losses to individuals and families, but also American economy The financial industry also fell into a long period of stagnation because it could not operate normally. The financial crisis in 1893 brought unprecedented economic recession to the United States. After 10 years of silence, the financial crisis broke out again in the United States in 1907. Crisis breaking blasting fuse yes stock market More speculator Attempts to manipulate the shares of United Copper Company were unsuccessful. Banks that lend to these speculators and Trust and Investment Company Therefore, the losses are heavy. In October 1907, New York The third largest trust and investment company, Knickerbocker Trust Company, was forced to declare bankruptcy. And 2008 Lehman Brothers Bankruptcy is similar. The bankruptcy of Kirnick Polk in that year triggered a wave of financial tsunami 。 The depositors are worried about themselves and withdraw money from banks and other financial institutions to avoid losses. because Financial panic The banks also lost trust, and the loans between them were completely frozen and ran. This bank run soon spread from New York to all parts of the country, and a market collapse similar to the financial crisis in 1893 was about to happen. At that time, the United States was famous finance company JPMorgan Chase (J.P. Morgan) seriousness , and immediately called a meeting of the presidents of the most important financial companies to ask everyone to come up with funds to help the banks facing runs. Morgan himself took the lead in helping the financial market through the crisis. To some extent, Morgan played a role similar to that of the Federal Reserve, which rescued financial markets in 2008.

Federal Reserve Act

Frequently eruptive financial crisis Let the public gradually realize that there are big problems in the laissez faire financial market. The voice of supporting the establishment of an institution to properly supervise the financial market is gradually rising. After the financial crisis in 1907, U.S. Senator Nelson Aldrich organized a committee to investigate the causes and lessons of the financial crisis. In the 1907 crisis, although nearly 100 banks still failed due to bank runs, it was a good outcome compared with the failure of more than 500 banks in 1893. Morgan led other financial institutions to step forward and provide working capital It was an important factor in the successful resolution of the 1907 crisis. But there are many ways to solve the crisis depending on the ability of someone in the financial market Uncertainty , preferably Legal form Give an institution the function of stabilizing the financial market to ease the crisis. So Aldrich spent nearly two years visiting the central banks of European countries, and Europe and America The financial market has carried out systematic comparative analysis 。 Then he drafted a proposal known as the Aldrich Plan, claiming that the United States should imitate European countries to establish a unified central bank. In the event of a financial crisis similar to that in 1907 in the future, the Central Bank can provide emergency loans to the run on banks, so as to stabilize the confidence of the financial market.

However, the Aldrich Plan was strongly opposed by many members of Parliament. As republican party Aldrich, a key member of Functions of the Central Bank 。 The various roles of the central bank in the Aldrich Plan are completely private bank Play, unlike the central banks of European countries, which belong to government agencies. This setting mode is also affected by the First Bank and the Second Bank of the United States to some extent. The opponents of Aldrich Plan mainly come from Midwest America Agricultural state. These engaged in traditional agriculture On the one hand, people of banking If it is too strong, it will kidnap the whole economy. On the other hand, low-income people in these states believe that the bill mainly serves the rich in the eastern commercial developed areas, rather than the American public. Aldrich himself has a close relationship with JPMorgan, the founder of JPMorgan Chase, and his daughter has married an American super rich man Rockefeller Rockefeller, Jr. This inextricably linked relationship with the super rich family makes Aldrich hard to argue against these accusations. the Democratic Party of the United States people Thomas Woodrow Wilson He was elected President of the United States in 1912. His election nearly killed the Aldrich Plan and put forward the idea of establishing a central bank again. Fortunately, President Wilson believed that although the Aldrich Plan was proposed by the Republican Party Overall framework There are many advantages. If it is carefully revised and implemented, it will have a great impact on the US financial market Facilitation 。 Therefore, with the support of President Wilson, Senator Irving and Representative Grass drafted the Federal Reserve Act in 1913 based on the Aldrich Plan. The Federal Reserve Act Institutional setup Similar to Aldrich Plan, but strengthened US Federal Government Impact in the Federal Reserve. The original Aldrich Plan made the Federal Reserve completely qualitative As a private institution, the Federal Reserve Act defines the Federal Reserve in Washington as a federal government agency, although the Federal Reserve's 12 Federal Reserve Bank Is characterized as being closer to Private sector A non-profit organization.

1913 US Congress The Federal Reserve Act was finally passed by consensus. President Wilson signed the bill, officially announcing the establishment of the Federal Reserve.

Modern period

In July 2023, Federal Reserve officials announced the launch of the FedNow system, which aims to enable bill payment, payroll checks and other common consumer or enterprise transfers to be made quickly and 24/7.^[35]

On September 22, 2023, the spokesman of the Federal Reserve confirmed that about 300 employees will be cut in 2023, the first time since 2010.^[38]

Basic architecture

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The Federal Reserve consists of the Federal Reserve in Washington and 12 Federal Reserve Bank form. The main monetary policies of the Federal Reserve are jointly formulated by the members of the Federal Reserve Board and the chairman of the Federal Reserve Bank. To avoid policy Decision making power Too concentrated in a few areas (such as Washington and New York ）。

Federal Reserve Banks

The First Bank and the Second Bank of the United States were finally forced to close because they were not accepted by the public. One of the important reasons is that both banks are located in Northeast United States Philadelphia is considered by many to serve some wealthy businessmen in the Northeast, rather than all Americans. The Federal Reserve carefully learned this lesson when it was established.

In terms of organizational form, the Federal Reserve adopts the dual role of federal government agencies and non-profit institutions organization structure Thus avoiding the complete concentration of monetary policy in the hands of the federal government. The Federal Reserve put 12 Federal Reserve Bank Established as Non profit organization One of the original intentions of non-governmental organizations is to consider both the government and private sector The sound of. Although the Federal Reserve in Washington is US Federal Government 12 Federal Reserve Banks are not federal government agencies, but non-profit Private organizations 。 However, it should be emphasized that the Federal Reserve Bank is different from general private organizations. The Federal Reserve Bank is not for profit, but undertakes the public functions of the United States Central Bank together with the Federal Reserve.

The 12 Federal Reserve Banks are headquartered in boston （Boston）、 New York （New York）、 Philadelphia （Philadelphia）、 Cleveland （Cleve- land ）Richmond（ Richmond ）、 Atlanta （Atlanta）、 Chicago （Chicago）、 St. Louis (St. Louis), Minneapolis Kansas City （Kansas City）、 Dalas (Dallas) and San Francisco （San Francisco）。 And each Federal Reserve Bank There are also branches in the jurisdiction. For example, the Dallas Federal Reserve is headquartered in Dallas, but has branches in Houston, San Antonio and Elpa.

The following figure shows the headquarters of the 12 Federal Reserve Banks and their respective jurisdictions. Since each Federal Reserve Bank manages a large region, these banks are often referred to as the regional Federal Reserve for short. Obviously, most Federal Reserve Banks are located in the Northeast of the United States. This is mainly because when the Federal Reserve was established in 1913, the economic focus of the United States was mainly concentrated in the northeast. Each Federal Reserve Bank code is assigned by a English letter And a number. For example, the Boston Federal Reserve was the first to be established Federal Reserve Bank , code 1A. The second one was the New York Federal Reserve, code named 2B, and so on. The Dallas Federal Reserve was the 11th to be established, so it is code named 11K. The names and codes of different Federal Reserve Banks are printed on the $1 bills, indicating the region from which the $1 bills were sent to the market.

personnel system

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Federal Reserve monetary policy Highest of decision-making body It includes 7 members of the Board of Governors of the Federal Reserve and 12 presidents of the Federal Reserve Banks. The most important monetary policy of the Federal Reserve is called Open market operation The Federal Reserve market overt The meeting (or interest meeting) was held to formulate this policy. Open market policy It is jointly formulated by the Federal Reserve in Washington and the Federal Reserve Banks in various regions. The 12 Federal Reserve Banks of the Federal Reserve are relatively independent institutions. For example, the chairman of the Federal Reserve Bank can serve as Open Market Committee During his term as a member, Federal Reserve Bank The chairman of the Federal Reserve Board and other members of the Federal Reserve Board have the same Voting rights 。

The seven executive members of the Federal Reserve are composed of the chairman, vice chairman and five other members. All the seven executive members must be nominated by the President and confirmed by the Congress before taking office. The term of office of each executive member is 14 years, and they cannot be re elected after they arrive. Note that the term of office of 14 years here refers to the term of office of the executive member, and is not the same as the term of office of the chairman of the Federal Reserve. After the Executive Committee takes office, the President has no right to remove them. If they need to be removed, they must be voted by two-thirds of the members of Congress.

At the same time, the Federal Reserve Act stipulates that the term of office of the seven executive members should be separated by two years. For example, if the first member's term of office starts in 2012, the second member's term of office starts in 2014, the third member's term of office starts in 2016, and so on. Therefore, in the 4-year term of office of the President of the United States, only two executive commissioners will end. It is up to the President to decide who is the new candidate. This tenure arrangement of the Federal Reserve largely limits the President's control ability 。 The Executive Committee of the Federal Reserve can be nominated by the President as the Chairman or Vice Chairman of the Federal Reserve for a term of four years. The President, after nominating the Chairman and Vice Chairman, must also be approved by the Congress before taking office. Once in office, the President and Vice President cannot be removed by the President alone during their term of office, and they must obtain 2/3 of the votes of Congress to pass.

In addition, the chairman and vice chairman of the Federal Reserve are also one of the seven executive members of the Federal Reserve Board. The term of office of the Chairman and Vice Chairman does not conflict with the term of office of the Executive Committee they serve at the same time. Even if the term of office of the Chairman and Vice Chairman ends, if the term of office of the Executive Committee has not ended, they can still continue to serve as Executive Committee members. Bernanke's 14 year term as an executive member of the Federal Reserve does not end until 2020. If he is willing, he can still participate in the formulation as one of the seven executive members even if he does not serve as the chairman US Monetary Policy 。 As an executive member, he enjoyed the same voting rights as the chairman of the Federal Reserve. It can be seen from these system designs that although the President of the United States is the highest in the United States executive However, the ability to intervene in the monetary policy of the Federal Reserve is actually very limited.

Operating mechanism

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Independence

As the central bank of the United States, the Federal Reserve US Congress Access to rights. It is regarded as an independent central bank because its resolution does not require the President of the United States or legislature It does not accept the appropriation of the United States Congress, and its members' term of office also spans multiple presidential and congressional terms. Its financial independence is guaranteed by its huge profitability, mainly due to its commitment to Government bonds Ownership of. It returns billions of dollars to the government every year. Of course, the Federal Reserve is subject to the supervision of the United States Congress, which regularly observes its activities and changes its functions through decrees. At the same time, the Federal Reserve must financial policy Work under the overall framework of the.

Decision principle

All financial institutions in the United States that take deposits from depositors have one reserve fund Re serve Account. These financial institutions except the Federal Reserve Member Bank In addition, it also includes credit unions, savings and loan associations, and branches of foreign banks in the United States. The Federal Reserve requires all financial institutions that take deposits from depositors in the United States to deposit some funds in the Federal Reserve to meet the sudden withdrawal needs of depositors. this Fund account It is called the reserve account. Reserves of each institution as required by the Federal Reserve Account balance Cannot be lower than what it absorbs Short term deposit A certain proportion of. This ratio is called reserve ratio or Deposit reserve ratio （Reserve Requirement Ratio）。

If the reserve of a financial institution is lower than the requirement, it must find ways to raise funds to make up. On the contrary, if the reserve is higher than the requirement of the Federal Reserve, the surplus is called excess reserve and can be withdrawn at any time. Under normal circumstances, a bank with insufficient reserves can pay the excess reserves Short term bank loans , make up the reserve. Short term transactions between such financial institutions in the market to meet reserve requirements lending rate go by the name of Federal Funds Rate 。

The Federal Reserve passed market overt To affect the federal funds rate. Open market operation refers to the behavior of the Federal Reserve to release or withdraw money from the market by buying and selling bonds. For example, when the Federal Reserve buys bonds, it pays the other party dollar , which increases the supply of dollars in the market; On the contrary, when the Federal Reserve sells bonds, it withdraws dollars from the market. This operation is called Open market operation Because all financial institutions in the market that meet the requirements can apply for trading with the Federal Reserve. Open Market Committee After setting the target of the federal funds interest rate, the Federal Reserve changes the amount of money issued in the market through open market operations to achieve the preset target interest rate. For example, the federal funds rate on the market is 2.5%, and the Open Market Committee decided to raise the rate to 2.75%. To achieve this goal, the Federal Reserve sells bonds in the open market and recovers money. At this time, the money held by financial institutions decreases, the excess reserve decreases, and the interbank reserve loans Interest rate rise 。 (Generally speaking, there is less cash in circulation in the market, which causes the interest rate to rise.)

The Federal Reserve conducts this operation until Federal Funds Rate Reaching the target interest rate of 2.75%. If the Federal Reserve wants to lower the federal funds rate, it can do the opposite (buying bonds and releasing money). For risk and Market capacity Under normal circumstances, the Federal Reserve Open market operation The bonds traded in China are mainly short-term government bonds.

The Federal Reserve regulates Federal Funds Rate such Short term interest rate , can be financial market It causes a series of chain reactions. Changes in the federal funds rate will directly affect other short-term interest rates (such as short-term Treasury bond interest rate , commercial paper interest rate, etc.), and then further change Long term interest rate (e.g Housing loan interest rate 、 Auto loan interest rate , long-term corporate bond interest rate, etc.). long-term Change in interest rate Will affect Household consumption and Enterprise investment When the interest rate drops, the cost of enterprise investment and household consumption will decrease, promoting the growth of investment and consumption. Therefore, during economic recession, the Federal Reserve supports economic growth by lowering interest rates; conversely Overheated economy The Federal Reserve will raise interest rates to curb investment and consumption. In addition, the Federal Reserve's Interest rate policy You can also use Asset price Affects the economy. For example, when the interest rate decreases, the return on investment in bonds decreases. With other conditions unchanged, the fund will be transferred from bond market Flow to stocks and other assets Market, driving up the prices of these assets. therefore Economic downturn When the Federal Reserve lowers interest rates, it will have two driving effects on the economy: first, lowering interest rates can promote domestic investment and consumption; Secondly, low interest rates also support asset prices such as stocks and real estate Family wealth Encourage household consumption. In addition, changes in interest rates will also cause USD exchange rate Changes affect the import and export of the United States.

limitations

First, there are many factors affecting the financial market, and the interest rate set by the Federal Reserve is only one of them. For example, one of the most important factors affecting the financial market is the investors' attitude towards the future economic situation Judgment, that is, market expectations. Federal Reserve's Interest rate policy How to affect market expectations depends on investors' interpretation of policies. And any economic policy Both can be interpreted optimistically and pessimistically, which brings Uncertainty ；

Second, the Federal Reserve regulates Federal Funds Rate After, Long term interest rate and Real economy How to respond is also uncertain;

Third, Economic decision-making The data basis of Hysteresis The effect of decision-making itself also lags behind, which also leads to the difficulty of economic policy taking effect and withdrawing.

Source of income

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The revenue of the Federal Reserve System mainly comes from the following aspects:^[3]

1. Purchase through the open market US Government Bonds Of Interest income 。

2、 Foreign exchange investment Income.

3. To various deposit institutions Commercial bank loans Interest income obtained.

4. Remuneration for services provided to depository institutions and commercial banks (such as Check settlement ， Capital turnover , Automated Tickets exchange And other services. After paying dividends to member banks, the Federal Reserve System must pay the remaining income to the U.S. Treasury, which accounts for about all Federal Reserve Bank net income 94% of revenue and expenditure, Federal Reserve Board Will be detailed in its annual report). If a Federal Reserve Bank is liquidated for some reason, the remaining assets will be transferred to the US Treasury Department after all debts have been repaid.

Schedule of interest rate increase

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In the early morning of March 17, 2016 (Beijing time), the Federal Reserve announced to keep interest rates unchanged as expected by the market, and reduced the number of interest rate hikes in the year from four to two,^[4] global economy Hidden Downward risk And the U.S Inflation rate This has become two major concerns for the Federal Reserve to postpone interest rate increase.

On December 15, 2016 Beijing time, the Federal Reserve announced Interest rate resolution , announced an interest rate increase of 25 basis points, which will also Federal Funds Rate The target range was increased to 0.5% - 0.75%, and the resolution statement was obtained Unanimously adopted 。 This is the second interest rate increase by the Federal Reserve since the first interest rate increase in December 2015, a whole year later.^[5]

On December 15, 2016 (Beijing time), after the Federal Reserve announced its first interest rate increase in the year, the Hong Kong Monetary Authority subsequently said that it would benchmark interest rate It was raised from 0.75% to 1%, that is, the interest rate was raised by 25 basis points.^[6]

In the early morning of March 16, 2017 Beijing time, the Federal Reserve announced that it would raise interest rates by 25 basic point The federal funds rate was raised from 0.5%~0.75% to 0.75%~1%.

Interest changes in the United States since 1955

Beijing Time On June 15, 2017, the Federal Reserve announced an interest rate increase of 25 basis points, Federal Funds Rate From 0.75%~1% to 1%~1.25%.^[7]

On September 21, 2017 (Beijing time), the Federal Reserve announced that it would keep interest rates unchanged, and gradually cut its high interest rate from October

$4.5 trillion Balance Sheet Scale. It is still expected to raise interest rates again in 2017. It is estimated that the interest rate will be increased three times in 2018, twice in 2019 and once in 2020.^[8]

On December 19, 2018, the Federal Reserve announced after its monetary policy meeting that it had decided to raise interest rates by 25 basis points and raise the target range of the federal funds rate to 2.25% - 2.5%.^[9]

On March 16, 2022 local time, the Federal Reserve Federal Open Market Committee (FOMC) If the market expects to raise the federal benchmark interest rate from 0% - 0.25% to 0.25% - 0.50% by 25 basis points, this is the first interest rate increase of the bank since December 2018. Published at the same time (including Lattice diagram In the economic forecast, Federal Reserve officials predict that the interest rate will reach 1.9% by the end of 2022. If the interest rate is raised by 25 basis points each time, the Federal Reserve will raise interest rates each time in the remaining six meetings.^[17]

On the afternoon of May 4, 2022 local time, the Federal Reserve decided at a meeting to US Federal Funds Rate Increase by 0.5% (i.e., increase by 50 basis points, or increase by two yards) to reduce the U.S continue high Inflation rate. After the interest rate hike, the federal funds rate range increased to 0.75% to 1%. This is the first time that the Federal Reserve has raised interest rates by 0.5% in 22 years.^[19-20]

On June 15, 2022, the Federal Reserve of the United States announced an interest rate increase of 75 basis points, raising the target range of the federal funds rate to between 1.5% and 1.75%.^[22]

On July 27, 2022 local time, Federal Reserve Board It announced an interest rate increase of 75 basis points, reaching a range of 2.25% to 2.5%.^[24]

On September 21, 2022 local time, Federal Reserve Board The announcement of an interest rate increase of 75 basis points raised the target range of the federal funds rate to between 3.00% and 3.25%, in line with market expectations. This is the fifth interest rate increase since the Federal Reserve, and also the third consecutive interest rate increase of 75 basis points, the largest intensive interest rate increase since 1981.^[26] Policymakers also hinted that interest rates were expected to be further raised by the beginning of 2023. Affected by this message, US stocks The three indexes fell rapidly, and the Federal Reserve raised interest rates sharply in succession. Economists worried about the risk of economic recession.^[27]

On December 14, 2022, the Federal Reserve announced that it would raise the target range of the federal funds rate by 50 basis points to between 4.25% and 4.50%.^[29]

On February 1, 2023, the US Federal Reserve announced that it would raise the target range of the federal funds interest rate by 25 basis points to 4.5% to 4.75%, which is in line with the market consensus.^[30]

On March 22, 2023 local time, the Federal Reserve announced that it would raise the target range of the federal funds rate by 25 basis points to between 4.75% and 5%, the highest level since October 2007. This is also the ninth interest rate increase since March 2022.^[32]

On May 3, 2023 local time, the Federal Reserve announced that it would raise the target range of the federal funds interest rate by 25 basis points to between 5% and 5.25%. This is the 10th consecutive interest rate increase by the Federal Reserve, with a cumulative increase of 500 basis points.^[33]

The Federal Reserve decided on Wednesday (June 14, 2023) to oppose the 11th consecutive interest rate increase when assessing the impact of the previous 10 interest rate increases.^[34]

On July 26, 2023 local time, the Federal Reserve announced that it would raise the target range of the federal funds rate by 25 basis points to 5.25% to 5.5%, the highest level since 2001. This is the 11th rate increase since March 2022, after the Federal Reserve suspended the rate increase once in June.^[36]

Schedule of interest rate reduction

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At 2:00 p.m. local time on July 31, 2019, Beijing Time At 2:00 a.m. on August 1, Federal Reserve Board Announce that Federal Funds Rate The target range was lowered by 25 basis points to the level of 2% to 2.25%. This is the first interest rate cut by the Federal Reserve since December 2008.^[10]

In the early morning of September 19, 2019, Beijing time, the Federal Reserve again announced a 25 basis point interest rate cut, which will Federal Funds Rate The target range was lowered to 1.75% - 2.00%.^[11]

On March 3, 2020, the Federal Reserve announced an emergency interest rate cut of 50%. This is 2008 financial crisis Since then, the United States has taken the first emergency interest rate cut, which is also the largest interest rate cut since then.^[12]

On March 15, 2020, Federal Reserve Board Announced the reduction of the target range of the federal funds rate to an ultra-low level of zero to 0.25%.^[13]

Emergency plan

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On June 29, 2020, the Federal Reserve said that, Primary market Corporate credit arrangements（ PMCCF ）Yu opened up, which is its nine major epidemic urgent Loan plan The last operational project in.^[14]

Current leaders

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Jerome H. Powell, Interim Chairman of the Federal Reserve.^[16]

In April 2022, the President of the United States Joe Biden Will be nominated US Treasury Veteran, 2010《 Dodd-Frank Act 》One of the designers of Michael Barr Federal Reserve Banking supervision The highest responsible person.^[18]

On May 12, 2022 local time, United States Senate The chairman of the Federal Reserve was confirmed by the voting result of 80 in favor and 19 against Powell It will be Powell's second four-year term.^[21]

Federal Reserve Board vice president: Michael Bahr ^[23] 、 Brainard (resigned on February 20, 2023)^[31] 、 Philip Jefferson^[37]

Directors of the Federal Reserve: Adriana Kugler 、 Lisa Cook^[37]

Violations

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Several senior officials violated the rules

In 2021, several senior officials of the Federal Reserve were exposed to be abnormal in 2020 Trading behavior At that time, the Federal Reserve COVID-19 epidemic As a result of the impact on the economy, the interest rate was lowered to near zero and a large amount of rescue funds were launched. After the news was revealed Robert S. Kaplan (Robert Kaplan) and Chairman of the Boston Federal Reserve Eric Rosengren (Eric Rosengren) announced that early retirement 。

The storm also once affected Powell And then Vice Chairman of the Federal Reserve Richard Clarida （Richard Clarida）。 Federal Reserve Inspector General's comments on Powell Family Trust The transaction with Clarida was investigated, but in July 2022 Not found Evidence of illegal transactions.

On October 14, 2022 local time, after several senior officials of the Federal Reserve were exposed to abnormal trading activities in 2021 and triggered rectification by the Federal Reserve, Raphael Bostic, chairman of the Federal Reserve of Atlanta, admitted that he had violated a large number of credit requirements for securities trading since he served five years ago. He said that in order to avoid Conflict of Interest , place the asset in a third party that you cannot guide Asset management company , the latter conducted transactions during the trading restriction period of the Federal Reserve, and these transactions were "unintentionally" not recorded in its credit rating documents. Federal Reserve Chairman Powell has ordered an investigation and will take corresponding actions according to the investigation results.^[28]

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