What was the Purpose of Establishing the Federal Reserve Bank

Hello sir I am here as I want to know what is the Purpose of Establishing the Federal Reserve System so will you please tell me about this??

[Pathak]

The Federal Reserve System—also known as the Federal Reserve or simply as the Fed—is the central banking system of the United States It was created on December 23, 1913, with the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907

The System's structure is composed of the presidentially appointed Board of Governors or Federal Reserve Board (FRB), partially presidentially appointed Federal Open Market Committee (FOMC), twelve regional Federal Reserve Banks located in major cities throughout the nation, numerous privately owned U.S. member banks, and various advisory councils

Purpose

The primary motivation for creating the Federal Reserve System was to address banking panics.

Other purposes are stated in the Federal Reserve Act, such as "to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes".


Current functions of the Federal Reserve System include:

-To address the problem of banking panics

-To serve as the central bank for the United States

-To strike a balance between private interests of banks and the centralized responsibility of government
To supervise and regulate banking institutions
To protect the credit rights of consumers

-To manage the nation's money supply through monetary policy to achieve the sometimes-conflicting goals of
Maximum employment
Stable prices, including prevention of either inflation or deflation[26]
Moderate long-term interest rates

-To maintain the stability of the financial system and contain systemic risk in financial markets

-To provide financial services to depository institutions, the U.S. government, and foreign official institutions, including playing a major role in operating the nation's payments system
To facilitate the exchange of payments among regions
To respond to local liquidity needs

-To strengthen U.S. standing in the world economy


List of members of the Board of Governors

The current members of the Board of Governors are as follows

Janet Yellen(Chair)
Entered office: February 3, 2014 (as Chair) and October 4, 2010 (as Governor)
Term expires: February 3, 2018 (as Chair) and January 31, 2024 (as Governor)

Stanley Fischer (Vice-Chair)
Entered office: May 28, 2014 and June 16, 2014 (as Vice Chair)
Term expires: January 31, 2020 (as Governor) and June 12, 2018 (as Vice Chair)

Daniel Tarullo
Entered office: January 28, 2009
Term expires: January 31, 2022

Jerome H. Powell
Entered office: May 25, 2012 and June 16, 2014 (new term)
Term expires: January 31, 2028

Lael Brainard
Entered office: confirmed June 12, 2014
Term expires: January 31, 2026