FRB
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- How to read in Japanese: FRB
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FRB stands for “Federal Reserve Board” and refers to the Board of Governors of the Federal Reserve System, which, under the FRS (Federal Reserve System), oversees the Federal Reserve Banks in major cities across the country and is positioned as the central bank of the United States.
FRB is composed of seven directors, including the Chairman and Vice Chairman. The Chairman, who is nominated by the President and confirmed by the Senate, serves a 14-year term, and the full Vice Chairman, who is elected from among the Board members, serves a 4-year term.
FRB’s main role is to stabilize the economy and prices by controlling the amount of money in the market. This is called monetary policy.
Commercial banks that are members of the Federal Reserve System are required to deposit a certain percentage of their outstanding deposits as reserve deposits, and any excess or deficiency is loaned to each other on an unsecured basis. The interest rate applied at this time is called the Federal Funds (FF) rate. FRB conducts monetary policy by guiding the Federal Funds (FF) rate through the purchase and sale of U.S. Treasury securities and other means.