Letters

The Twelve Federal Reserve Banks

The Federal Reserve System of the United States has twelve regional banks that conduct the operations of the central bank.  Each of the twelve banks is identified by both a number and a letter.

How It's Used

"The nation's 12 Federal Reserve Banks reported that economic growth remained moderate to strong in virtually the entire country during March and April, with few signs of inflation and even fewer signs that the economy is slowing."

"Deep policy disputes within the Fed are rare. Mr. Greenspan has always sought to forge consensus on the policy-setting Federal Open Market Committee, which includes the 7 governors and the presidents of the 12 Federal Reserve Banks, 5 of whom have voting seats at any one time. Both Mr. Bernanke and Mr. Kohn seem likely to fit well within the mainstream of thinking inside the Fed about the economy and interest rates. Mr. Kohn has been a sounding board for Mr. Greenspan for 15 years and seems unlikely as a governor to deviate much from the pragmatic but inflation-wary philosophy that has defined the Greenspan Fed."

"An important part of the Sept. 20 meeting will be the presentations on regional conditions by the presidents of the 12 Federal Reserve banks, which operate local branches and confer with businesses in their districts. The session will probably involve more debate than recent meetings, during which policymakers easily agreed to keep raising their benchmark rate, analysts said. And Fed officials might issue a longer statement after the meeting, explaining their action and their view of Katrina's economic effects."

"There is another objection to the '2009 = 1933' thesis: current circumstances in the US do not approach the gravity of the situation FDR faced when he took office. To date, GDP has fallen at an annual rate of about 6% from its 2008 peak; by 1933, GDP had fallen nearly 40% from four years earlier. Unemployment is now 8.1%, up from 4.9% a year ago; by early 1933, unemployment was 25%, including 37% outside the agricultural sector. Today the banking system is in deep trouble, but at the start of the New Deal it was much worse. As FDR took office on March 4, 1933, all 12 Federal Reserve banks were closed, and banks in 37 states had either limited withdrawals or shut their doors."

"Lynch completes her second three-year term at the end of this year. Board members are generally limited to two consecutive terms. Kirk A. Sykes, president of the Boston real estate investment firm Urban Strategy America Fund LP, will succeed Termeer. The 12 Federal Reserve banks each have nine members on their boards of directors, three selected by the board of governors."

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