On-line Trading Tips:There's Just Something About Ben

There's just something about Ben I like. Ben Bernanke, Chairman of the Federal Reserve that is. The Federal Reserve was created on December 23, 1913 by an Act of Congress to serve as the U.S. central bank. There is a seven member board of governors and districts located around the U.S. that serve regional matters. The board of governors are appointed by the President and confirmed by the U.S. Senate for terms of 14 years.

As some may recall from History 101, Alexander Hamilton liked the idea of a central bank and centralized governments. The Federal Reserve while operating in a central bank frame of reference also incorporated Thomas Jefferson's concept of states and regions into the mix. So, while the Federal Reserve Board of Governors operated in a centralized location, Washington, D.C., the 12 districts and 25 branches are in every state and provide input and monitor the individual regions on a daily basis.

To say, the Federal Reserve monitors and establishes monetary policy would be an understatement of what the Federal Reserve does in the United States. Sure, the Federal Reserve sets interests rates, but it does so much more. Our central bank, the Federal Reserve talks to other central banks around the world to find out what is going on in the global financial world. The Federal Reserve monitors banking practices in the United States.

The Federal Reserve monitors fiscal responsibility of the national budget. The Federal Reserve looks at long term projections of spending, credit and debt. While appointed by the Executive Branch of government and confirmed by Congress, the Federal Reserve tries to maintain a cool, detached head in advising and regulating the all important, "Money & Financial Security," of the United States. It is not easy, as the complexities of the world economy and monetary policies of the marketplace are evolving and not stagnate.