Who owns the Federal Reserve?

[Andre II]

I've just watched Aaron Russo's "From Freedom to Fascism":
http://video.google.fr/videoplay?docid=-4312730277175242198&q=%22Freedom+to+Fascism%22

And I wanted to check a centrail claim of the film.
According to them the Federal Reserve doesn't belong to the state as I always thought but is owned by private companies.
So, who owns Federal Reserve?

[Nicole]

1. The Federal Reserve System is not "owned" by anyone.

http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm

Who owns the Federal Reserve?

The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.

As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

[steve2470]

2. googled

Who owns the Federal Reserve?

The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.

As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm#5

[Hippo_Tron]

3. I saw it in theaters, it was a nice piece of fiction

The President appoints the federal reserve board and most importantly the chairman, who control the federal reserve. This is so that they can make decisions about monetary policy without regard to politics. Read pretty much any economics textbook and it will tell you why it's a good thing that monetary policy decisions are not made by politicians.

[Name removed]

4. Deleted message

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[cassiepriam]

5. Halliburton?

[On the Road]

6. The Question Now Is:

Does the Fed chairman serve at the pleasure of the president? Can he be relieved of his duties for any reason, including refusal to expand the money supply or lower interest rates.

Seems like a silly question. At least it used to.

[Hippo_Tron]

7. The Fed Chairman has never served at the pleasure of the President

He cannot be relieved by the President, however the President can choose not to re-appoint him when his term expires. That said, when someone becomes so powerful in that position like Greenspan was, not re-appointing him would likely have negative economic effects due to uncertainty.

[Gabi Hayes]

8. according to this, he "cannot generally be fired." couldn't find out what that means.

brief outline of general facts:

http://faculty.tamu-commerce.edu/dfunderburk/231/notes/Econ231theFed.htm