Established in 1913 as per the Federal Reserve Act, The Federal Reserve System (Fed) was first designed to stabilize and regulate monetary and fiscal systems. As the national bank of the United States the Fed is an independent component of the government. Although it regularly communicates and is advised by many parts of the economic system the Fed operates and makes world-affecting decisions with out the consent, oversight, or regulation by any other part of the government. However the Fed does receive its appropriated power from Congress and its duties can be altered by statutes passed in the house. The Federal Reserve System is made up of four interconnected divisions that have there own responsibilities separate from the other parts. .
Board of Governors: .
The Fed is regulated and overseen by a Board of Governors of seven members who are appointed by the President and approved by the Senate to serve 14-year terms. In this seven is one chairman and one vice chairman who each serve four-year terms. The rules for selection of the board members clearly directs the President to select a ""fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country,"" also indicating that only one member may be chosen from any one of the twelve geographical districts. .
The chief responsibility of the Board of Governors is to create and amend monetary policy. On top of this weighty function they are required to serve as members of the Federal Open Market Committee. The board sets reserve and margin requirements and cooperates with the reserve banks to set the discount rate policy. They "implement major federal laws governing consumer credit. Combined with the Federal Open Market Committee, these are the tools of the Federal Reserve System. The Board is also responsible for regulating and supervising the functions of other banks, .