Author: Zhang Wen
It may sound incredible, but the prestigious U.S. central bank is actually a private company registered in Delaware. It is not at all the same as a U.S. federal government agency. Although the chairman of the Federal Reserve is appointed by the President and approved by Congress, it is still a privately-owned company!
The core of the Federal Reserve consists of a seven-person committee, 12 Federal Reserve banks, and the Federal Open Market Committee. All 12 Federal Reserve banks are private companies made up of major banks from their respective regions. Among them, the New York Federal Reserve Bank holds the most power and practically performs the functions of a central bank. The members of the seven-person committee - all hailing from banking and financial circles - are appointed by the President and approved by Congress, mainly responsible for major monetary policies. The Open Market Committee, on the other hand, is the executor of the decisions made by the seven-person committee, primarily authorizing the New York Federal Reserve Bank to carry out specific operations.