Understand the Federal Reserve in Minutes #XRP现货ETF将上线

1. The Federal Reserve is the central bank of the United States, responsible for banking and monetary policy.

2. The Federal Reserve was not established at the founding of the country. It was founded in 1913, while the United States was founded in 1776. This is because Americans fundamentally did not trust centralized authority.

3. Before the Federal Reserve, the U.S. had two temporary central banks: the First Bank of the United States and the Second Bank of the United States. They were responsible for raising funds for wars but only existed for about 20 years each.

4. Before the Federal Reserve, private banks across the U.S. could "print money" as long as they had collateral like gold, silver, or government bonds. Isn't that similar to today's USDT and USDC?

5. Throughout U.S. history, there have been multiple bank runs. Later, people realized the need to establish a central bank to backstop private banks nationwide.

6. The Federal Reserve's monetary policy is decided by the Federal Open Market Committee (FOMC). They meet 8 times a year to set the federal funds rate.

7. The FOMC is composed of 12 members: 7 voting members including the Federal Reserve Chair, and 5 regional Federal Reserve Bank presidents.

8. The voting members are appointed by the President, with the Chair serving a 4-year term, and the other 6 members serving 12-year terms. The New York Fed President has a permanent seat, while the remaining 4 seats rotate among the other 11 regional Fed presidents.

9. The most important missions of the Federal Reserve are to stabilize prices and promote maximum employment. These two goals often conflict, and the market generally considers price stability more important than employment.

10. Once appointed, the 7 voting members of the FOMC can only be removed by a two-thirds vote of Congress, giving them a relatively high degree of independence.