Does it matter if your favorite coffee goes up ten cents? If so, do you ever think about who decides prices based on its value? The value of money has changed dramatically over the decades, but it's still all an economic cycle. Knowing our future can be predicted through the Federal Reserve, our country's monetary policy, and discussion of our National Beige Book summaries. Consumer spending is measured to predict future policies where we can distribute our wealth across the country to citizens and find out which products are most in demand by the public. The Federal Reserve System is divided into twelve districts and each of its districts has a Federal Reserve Bank operated by the member banks in its district. It was founded in 1913 under the Federal Reserve Act by the United States. They oversee commercial banks in their region and act indirectly for the U.S. Treasury and the general public. Additionally, the bank can process U.S. Treasury payments, handle government investments and sell government bonds. It contains coins, currency and processing checks along with various electronic payments. They also conduct research on international economic issues to understand the latest developments in economic outlooks to help evaluate national policies. They serve member banks in exactly the same way that commercial banks serve the public. Checks that member banks receive from other banks are automatically deposited into their Federal Reserve accounts. As a result, banks are constantly clearing their checks through the Federal Reserve. These twelve banks are coordinated by a seven-member Federal Reserve Board in Washington. The President with the help of the Senate appoints members of the board for four......middle of paper......increased demand. If I could advise the Federal Reserve, I would encourage expansionary policy to increase the quantity of currency in banks. The Federal Reserve can purchase securities on the open market to raise bond prices and then sell them at a higher price. To summarize everything I've written about our Federal Reserve, it has its pros and cons, but overall it looks out for the best interest of Americans. But I believe that our day-to-day economic reform would benefit more from our loose monetary policy because it can lower reserve requirements so that our federal banks can have more currency, which would then lead to a low interest rate on loans. Then people will be willing to invest on their own to take on greater risks from which our country will be able to benefit greatly. With this action, I believe every American can have the opportunity to benefit from our government.