The History & Function of U.S. Federal Reserve System

This presentation teaches students about the origins and ongoing operations of the Federal Reserve System. Following a brief summary of early efforts to establish a central national bank—all of which failed because of political opposition—the program details the circumstances that led to the 1913 creation of what we now call “the Fed,” a multilayered institution designed to reflect central, local, and private interests. The production delineates the separate but interdependent functions of its presidentially appointed Board of Governors, the Federal Open Market Committee, and the 12 regional Federal Reserve Banks. In addition, viewers learn about the role of the Fed in overseeing the nation's monetary policy and banking system, as well as the effects that its decisions can have on ordinary citizens. Aimed at middle and high school students (an example concerning interest and inflation is based on deciding what to do with a cash birthday present), this straightforward overview emphasizes the role of the Fed in maintaining a safe, stable financial system (although it neglects to discuss failures during the current recession), combining narration, archival material, and illustrative graphs for a solid historical and economic account. Recommended. Aud: J, H, P. (F. Swietek)