Board of Governors
Definition of 'Board of Governors'
The Board of Governors is located in Washington, D.C., and its headquarters are at 20th Street and Constitution Avenue NW. The Board's main responsibilities are to:
* Set monetary policy, which is the use of interest rates and other tools to influence the supply of money and credit in the economy.
* Regulate the banking system, which includes setting capital requirements for banks and other financial institutions, and overseeing their activities.
* Supervise and regulate financial institutions, which includes ensuring that they are operating in a safe and sound manner and that they are complying with applicable laws and regulations.
The Board of Governors is led by the Chairman of the Board of Governors, who is appointed by the President of the United States and confirmed with the "advice and consent" of the Senate. The Chairman serves a four-year term, and may be reappointed to serve additional terms. The current Chairman of the Board of Governors is Jerome Powell.
The Board of Governors is an independent agency of the United States government, which means that it is not subject to the control of the President or Congress. However, the Board is required to report to Congress on its activities and to consult with Congress on matters of monetary policy.
The Board of Governors plays a central role in the U.S. economy. Its decisions on monetary policy have a significant impact on the level of interest rates, the availability of credit, and the overall health of the economy. The Board's regulatory activities also help to ensure the safety and soundness of the banking system and protect consumers from financial fraud.
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