What are the 12 Branches of the Federal Reserve?

The Federal Reserve is a private banking institution that was founded in 1913. The Federal Reserve is responsible for the United States’ monetary policy and is also the central bank of the United States. The Fed is also responsible for regulating banking institutions, securities, and transactions in the U.S. economy. This article will discuss the 12 branches of the Federal Reserve.

What are the 12 Branches of the Federal Reserve?

The 12 branches of the federal reserve are the following:

  • Boston
  • New York
  • Philadelphia
  • Cleveland
  • Richmond
  • Atlanta
  • Chicago
  • St. Louis
  • Minneapolis
  • Kansas City
  • Dallas
  • San Francisco

What is the Federal Reserve?

The Federal Reserve is an institution of the United States government that serves as the central bank of the United States. It is the central bank of the United States and is in charge of regulating the U.S. economy and sets interest rates for the country. 

The United States’ economy depends on the Federal Reserve. It was created in 1913 with the enactment of the Federal Reserve Act. The Federal Reserve can also be defined as an American institution designed to provide the country with a stable currency and financial system. 

The Federal Reserve System is composed of the Board of Governors, twelve regional Federal Reserve Banks, and a Federal Open Market Committee. 

The Board of Governors is currently composed of five members who are appointed by the President of the United States for 14-year terms. The twelve regional Federal Reserve Banks are each led by a presidentially appointed governor. 

These banks manage the United States money supply, issue the nation’s currency, and supervise and regulate private banks. The Federal Reserve System is also responsible for regulating the value of the U.S. dollar in international exchange markets.

The Federal Open Market Committee is chaired by the chairperson of the Board of Governors and meets eight times a year to determine interest rates, set monetary policy, and make other major decisions about monetary policy.

The Federal Reserve has three main responsibilities:

  • Regulating the nation’s banking system
  • Managing the nation’s money supply
  • Providing the nation with emergency credit

The Federal Reserve System is now composed of twelve regional banks/branches and one central bank, which is located in Washington D.C. These are the following:

Boston

  • Located at 600 Atlantic Avenue Boston, MA 02210
  • Covers the states of Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont; and all but Fairfield County in Connecticut.
  • Susan M. Collins – current President and Chief Executive Officer as of July 1, 2022 

New York

  • Located at 33 Liberty Street New York, NY 10045
  • Covers the state of New York; Fairfield County in Connecticut; and 12 counties in northern New Jersey, and serves the Commonwealth of Puerto Rico and the U.S. Virgin Islands.
  • John C. Williams – 11th and current president and chief executive officer of the Second District, Federal Reserve Bank of New York.

Philadelphia

  • Located at Ten Independence Mall Philadelphia, PA 19106
  • Covers the state of Delaware; nine counties in southern New Jersey; and 48 counties in the eastern two-thirds of Pennsylvania.
  • Patrick T. Harker – current president as of July 1, 2015, and  serves as an alternate voting member of the Federal Open Market Committee in 2022

Cleveland

  • Located at 1455 East Sixth Street Cleveland, OH 44114
  • Covers the state of Ohio; 56 counties in eastern Kentucky; 19 counties in western Pennsylvania; and 6 counties in northern West Virginia.
  • Loretta J. Mester – current president and chief executive officer of the Fourth District, Federal Reserve Bank of Cleveland as of  June 1, 2014.

Richmond

  • Located at 701 East Byrd Street Richmond, VA 23219
  • Covers the states of Maryland, Virginia, North Carolina, and South Carolina; 49 counties constituting most of West Virginia; and the District of Columbia.
  • Thomas I. Barkin – the eighth president and chief executive officer of the Fifth District, Federal Reserve Bank of Richmond as of January 1, 2018.

Atlanta

  • 1000 Peachtree Street NE Atlanta, GA 30309
  • Branch Banks at Birmingham, Alabama; Jacksonville and Miami, Florida; Nashville, Tennessee; and New Orleans, Louisiana.
  • Covers the states of Alabama, Florida, and Georgia; 74 counties in the eastern two-thirds of Tennessee; 38 parishes of southern Louisiana; and 43 counties of southern Mississippi.
  • Raphael W. Bostic – the 15th president and chief executive officer of the Sixth District, Federal Reserve Bank of Atlanta as of June 5, 2017.

Chicago

  • Located at 230 South LaSalle Street Chicago, IL 60604
  • Branch Bank at Detroit, Michigan.
  • Covers the state of Iowa; 68 counties of southern Michigan; 68 counties of northern Indiana; 46 counties of southern Wisconsin; and 50 counties of northern Illinois.
  • Charles L. Evans – current and 9th president and chief executive officer of the Seventh District, Federal Reserve Bank of Chicago as of September 1, 2007.

St. Louis

  • Located at One Federal Reserve Bank Plaza Broadway and Locust Streets St. Louis, MO 63102
  • Branch Banks at Little Rock, Arkansas; Louisville, Kentucky; and Memphis, Tennessee.
  • Covers the state of Arkansas; 44 counties in southern Illinois; 24 counties in southern Indiana; 64 counties in western Kentucky; 39 counties in northern Mississippi; 71 counties in central and eastern Missouri; the city of St. Louis; and 21 counties in western Tennessee.
  • James Bullard – currently serving a full term as of March 1, 2021. 

Minneapolis

  • Located at 90 Hennepin Avenue Minneapolis, MN 55401
  • Branch Bank at Helena, Montana.
  • Covers the states of Minnesota, Montana, North Dakota, and South Dakota; the Upper Peninsula of Michigan; and 26 counties in northern Wisconsin.
  • Neel Kashkari – current and 13th president and chief executive officer of the Ninth District, Federal Reserve Bank of Minneapolis as of January 1, 2016.

Kansas City

  • Located at 1 Memorial Drive Kansas City, MO 64198
  • Branch Banks at Denver, Colorado; Oklahoma City, Oklahoma; and Omaha, Nebraska.
  • Covers the states of Colorado, Kansas, Nebraska, Oklahoma, and Wyoming; 43 counties in western Missouri; and 14 counties in northern New Mexico.
  • Esther George –  ninth president and chief executive officer of the 10th District, Federal Reserve Bank of Kansas City as of October 1, 2011.

Dallas

  • Located at 2200 North Pearl Street Dallas, TX 75201
  • Branch Banks at El Paso, Houston, and San Antonio, Texas.
  • Covers the state of Texas; 26 parishes in northern Louisiana; and 18 counties in southern New Mexico.
  • Meredith Black- currently serving as an Interim President.

San Francisco

  • Located at 101 Market Street San Francisco, CA 94105
  • Branch Banks at Los Angeles, California; Portland, Oregon; Salt Lake City, Utah; and Seattle, Washington.
  • Covers the states of Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah, and Washington, and serves American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands.
  • Mary C. Daly – current president and chief executive officer of the 12th District, Federal Reserve Bank of San Francisco as of October 1, 2018.

Conclusion

The Federal Reserve System is an institution in the United States created to provide the nation with a safe and efficient method of managing its currency. The system has been in place since 1914 when it was created by Congress. The system’s goal is to provide the nation with an elastic currency and to keep inflation at a low level. 

Frequently Asked Questions (FAQs): what are the 12 branches of the federal reserve?

Why is the Federal Reserve divided into 12 districts?

The Federal Reserve is divided into 12 districts to help achieve the goal of a stable monetary system. The districts were chosen because of geographic, economic, and cultural diversity. Some of the districts also have a specific industry that they are focused on. This allows for a more concentrated regional policy and more efficient bank supervision.

Who owns the U.S. Federal Reserve?

The United States Federal Reserve is an independent central bank created in 1913 by the Federal Reserve Act. The Board of Governors is composed of seven members, and the president appoints three of them. The Chairman of the Board of Governors is the President of the United States. The other four members are chosen by the Board of Governors, including one each from the private sector and public sector.

Does the Federal Reserve pay taxes?

The Federal Reserve does not pay taxes on its profits, federal, state, and local taxation, except taxes on real estate which helps it keep interest rates low and stable in order to support the American economy.

Reference

Meltzer, A. H. (2010). A history of the Federal Reserve, Volume 1: 1913-1951. University of Chicago Press.

Conti-Brown, P. (2017). The power and independence of the Federal Reserve. In The Power and Independence of the Federal Reserve. Princeton University Press.

Federal Reserve System (FRS) Definition. Retrieved from https://www.investopedia.com/terms/f/federalreservebank.asp

The Great Recession | Federal Reserve History. Retrieved from https://www.federalreservehistory.org/essays/great-recession-of-200709 

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