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The Federal Reserve System of the United States consists of the Federal Reserve Board in Washington, D.C. and 65,438+02 regional federal reserve banks in major cities of China.

As the central bank of the United States, the Federal Reserve obtains power from the United States Congress, and exercises duties such as formulating monetary policy and supervising American financial institutions.

The Federal Reserve adopts the dual organizational structure of federal government agencies and non-profit organizations, thus avoiding the complete concentration of monetary policy in the hands of the federal government. The original intention of the Federal Reserve to set up the 12 Federal Reserve Bank as a non-profit organization rather than a government organization is to consider the voices of both the government and the private sector when formulating monetary policy.

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The central bank is considered to be independent, and its resolutions do not need the approval of the President of the United States or any senior legislature. It does not accept funds from the United States Congress, and its members' terms of office span several presidential and congressional terms. Its huge profitability ensures its financial independence, mainly because it owns government bonds. It returns billions of dollars to the government every year.

Remuneration for services provided to deposit institutions and commercial banks, such as check settlement, capital turnover and automatic bill exchange. After paying dividends to member banks, the Fed system must turn over the remaining income to the US Treasury, which accounts for about 94% of the total net income of the Fed banks.

Baidu encyclopedia _ Fed