Federal Reserve Bank

The Federal Reserve Bank of Chicago is one of the twelve regional Fed Banks in the United States. Otherwise called Fed, the Federal Reserve Banks, is collectively considered as the central bank for America. Learn more about the Fed System and the Chicago Fed.

The Federal Reserve Bank System was formed in the year 1913 at the U.S. Congress. The purposes of the Federal Reserve System were to flourish a healthy economy and to promote a better banking system. These two main objectives still remain today and serve as the founding principles of the Fed. The overall overseer of the Federal Reserve System is the Board of Governors located in Washington DC. All of the 12 Federal Reserve Banks cater to the needs of different districts.

The Federal Reserve Bank of the United States acts like the bank of the bankers and the bank of the government. It is considered as a regulator of the many financial institutions in America. And not only that, the Fed is very well seen too as America’s money manager, because ultimately it helps steer the financial system, the economy and the people.

Because each Fed bank has its own region of responsibility, the Federal Reserve Bank of Chicago is conducting activities in the 7th region of the Federal Reserve System. The 7th district is composed of Wisconsin, Michigan, Indiana, Illinois and Iowa. Of the twelve districts of the Fed, Chicago’s district has a large chunk of some of the most significant economic sectors in the United States. Michigan for instance is home to the biggest car manufacturers in the world. Chicago Fed’s branch office is situated too in Detroit. While key offices are located in Des Moines and southwest of Chicago.

The Federal Reserve Bank of Chicago is directed by able leaders who have vast experience and knowledge not only in banking but also in economics. Michael H. Moskow is the 8th CEO and President of the Chicago Fed since 1994. Gordon Werkema, responsible for the bank’s national customer relations and reserve support, is Chicago Fed’s vice president.

With the combined efforts of the governors and leaders, the Federal Reserve Bank of Chicago now supervises over one thousand one hundred state-member banks and bank holding firms. It has a total of two thousand seven hundred seventy nine depository institutions covered in the district including credit union, savings and loan institutions. In 2006, it recorded a total of $1.5 trillion of checks that were processed. It counted and received more than $56 million of currency. Chicago Fed enlisted fifty to sixty counterfeit notes every day. And it ditched $5.9 billion worth of unfit and destroyed currency.

How does Chicago Fed contribute to the economic growth of the Federal Reserve’s seventh district? Chicago Fed is responsible in the formulation of the national monetary policy. Chicago Fed’s active participation in the FOMC or the Federal Open Market Committee is very helpful in the formulating process. CEO Michael Moskow attends regular meetings of the FOMC and serves as a constituent voter of the committee.

Whether it’s electronic or hard copy, the Federal Reserve Bank of Chicago facilitates in the electronic payment dispensation and check clearing. Chicago Fed records more than a million transactions from both paper and electronic media. The contribution of this service from Chicago Fed has a great impact on the US economy with a US dollar value that is 6 times bigger than the country’s gross domestic products.

The Chicago Fed is truly an indispensable part of the U.S. banking industry and the economy as a whole. The bank employs roughly 1,500 workers. But with such a number, Chicago Fed is able to serve the constituents of the seventh district with genuine and utmost service.