HomeRegulatorsThe Federal Reserve Board (FRB)

The Federal Reserve Board (FRB)

The Federal Reserve Board (FRB) is an independent organization responsible for several important tasks such as setting interest rates and supervising financial regulatory bodies in the United States. This guide will share details of FRB responsibilities and reveal why the organization is crucial for alleviating financial crises. Those sending money abroad will benefit from reading about regulators such as the FRB, to learn how they guarantee more trustworthy financial services.

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Who is the Federal Reserve Board (FRB)?

The Federal Reserve Board (FRB), also known as the Board of Governors of the Federal Reserve System, is the governing body in charge of the United States’ Federal Reserve System. The board is responsible for maintaining the order of America’s central bank; most countries have similar organizations in place to monitor a nation’s financial system.

President Woodrow Wilson signed the Federal Reserve Act of 1913, thus creating the system which remains in operation today. The FRB follows The Banking Act of 1935 which sets reserve requirements and interest rates for deposits at each member bank. The Board is tasked with maintaining “fair representation of the financial, agricultural, industrial, and commercial interests and geographical divisions of the country.”

The FRB is made up of seven members, all of whom are appointed by the U.S. Congress. Each member is asked to serve a term of 14 years, but in practice, some may serve for shorter or longer periods of time. The Board of Governors is made up of a mix of Republicans and Democrats in a bid to ensure a balanced political perspective.

Due to being an independent organization, the FRB does not receive funding from the US government. Instead, funding comes from government securities, acquired through open market operations.

What is the FRB responsible for?

In this section, we take a closer look at the responsibilities of the FRB and the financial areas the board oversees. The Board’s core duties can be broken down into the following categories:

1. The Federal Reserve System

Their main responsibility is to look after the functioning of the Federal Reserve System. For the purpose of public financial health and the US economy, the Federal Reserve System requires constant optimization to meet modern demands.

2. Monetary Policy

The role of monitory policy includes creating stable prices in the US and promoting maximum employment.

3. Collaboration

The FRB collaborates with other financial organizations, which includes the Federal Open Market Committee and Federal Reserve Banks.

4. Improvement of Financial System Stability

The Governors of the FRB monitor US financial systems in terms of risk and look for ways to reduce problems by mitigating risk. Risk is assessed at the business, community, and household levels.

5. Regulation and supervision

The FRB regulates and supervises financial institutions to ensure they act in a way that is healthy for the US economy.

6. Payment system

The assessment and promotion of safe payment systems. This point is relevant for international money transfer customers.

7. Consumer protection and community development

The FDR researches policies and practices to find the best solutions for consumers.

Why is the FRB important?

The Federal Reserve Board sits at the centre of the US financial systems regulatory framework. They are responsible for the functioning of other regulatory bodies, which means that if there is corruption and bad practices here, then it is likely to creep into other vital government organizations.

The FRB is responsible for the US central bank, which is important for ensuring financial and economic stability. Low inflation rates and risk-free policies are at the heart of what the central bank aims to achieve.

The FRB is important for international money transfer customers because they also oversee money transfer companies. The secure and risk-free practices of money transfer methods are a big advantage for customers that want peace of mind.

What regions do the FRB cover?

The FRB is in charge of the US financial system. It also contributes to the regulation of foreign banks or companies that want to do business in the US. The FRB has 12 regional offices. One of them is in San Francisco, while the other 11 are spread out across the US.

When might you encounter the FRB?

You may encounter the Federal Reserve Board if you want to learn more about the central bank and how the US financial system works. They provide educational material for consumers to better understand how the FRB and the systems they oversee serve the general public.

How to contact the FRB

For those that wish to make contact with the Federal Reserve Board, you can use the following details:

  • Phone: to make a call you can use (312) 322-5322.

  • Email: to write questions use the email

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Bottom line

The Federal Reserve Board is an independent regulatory body that oversees the US central bank and other financial regulatory bodies. The board is made of 7 Governors and was created during the creation of the Banking Act of 1935. The FRB helps international money transfer customers by contributing towards the regulation of the financial system and money transfer companies.

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Article Factchecked by Elliot Laybourne on 20th July 2022. Elliott is a former investment banker with a 20 year career in the city of London. During this time he held senior roles at ABN Amro, Societe Generale, Marex Financial and Natixis bank, specialising in commodity derivatives and options market-making. During this time, Elliott’s client list included Goldman Sachs, JP Morgan, Credit Suisse, Schroders Asset Management, and the Pennsylvania State Public School Employees Retirement System, amongst others.
April Summers
April Summers
April is a trained journalist and the Content Editor for She has 10 years experience writing about a diverse range of subjects, from financial services to arts and entertainment. When she's not writing about global remittances she can be found daydreaming about her next holiday abroad.