The Board of Directors maintains regular contact with members of the President`s Council of Economic Advisors and other important economic officials. The Presidency also meets from time to time with the President of the United States and meets regularly with the Minister of Finance. The Presidency also has formal functions on the international stage. The Federal Banking Agency Audit Act, which was passed in 1978 as Public Law 95-320 and 31 U.S.C Section 714, provides that the Board of Governors of the Federal Reserve System and the Federal Reserve Banks may be reviewed by the Government Accountability Office (GAO).  When these instruments are used to drain the reserves of the banking system, they do so by replacing bank reserves with other debts; assets and the total weight of the Federal Reserve`s balance sheet remain unchanged. If necessary, to apply the monetary reserve, the Federal Reserve also has the option to repurchase or sell securities. The withdrawal or sale of securities would further reduce the Federal Reserve`s balance sheet, such as the amount of reserve in the banking system. Restoring the size and composition of the balance sheet to a more normal configuration is a long-term objective of our policy. In any event, the order of steps and the combination of instruments used by the Federal Reserve to move out of its current very accommodative political position will depend on economic and financial developments and our best assessments of how we can fulfill the Federal Reserve`s dual mandate of maximum employment and price stability. Both the discount rate and the policy rate influence the policy rate, which is generally about 3 percentage points higher than the federal average rate. The Term Deposit Facility is a program through which the Federal Reserve Banks offers paid term deposits at eligible institutions. Eliminating “excess deposits” from participating banks will reduce the overall level of reserves available for loans, which should lead to higher market interest rates, which will dampen economic activity and inflation.
The Federal Reserve has stated that a member bank is a private institution and owns shares in its regional Federal Reserve Bank. All nationally chartered banks hold shares in one of the Federal Reserve`s banks. State-chartered banks may choose to be members (and hold shares in their regional federal reserve bank) if they meet certain standards. Through their discount window and credit-related operations, reserve banks provide liquidity to banks to meet short-term needs due to seasonal changes in deposits or unexpected withdrawals. Longer-term liquidity may also be provided in exceptional cases. The interest rate that the Fed calculates to banks for these loans is called the discount rate (officially the main credit rate). The head of the bipartisan National Monetary Commission was the Republican financial expert and president of the Senate, Nelson Aldrich. Aldrich set up two commissions, one to study the US monetary system in depth, the other under the direction of Aldrich himself, to study and report on the systems of the European Central Bank.  Eligible guarantees for loans granted through the PDCF included all assets eligible for pension agreements as of September 12, 2008 through the major clearing banks. The amount of the PDCF credit granted to each merchant must not exceed the loanable value of the eligible assets made available to the FRBNY by the distributor. The guarantees were assessed by the clearing banks; The values were based on prices reported by a number of private sector price services, which were widely used by market participants.