What is the Federal Reserve Bank of New York?
• The Federal Reserve Bank of New York is one of 12 Reserve Banks in the United States of America. Located at 33 Liberty Street in New York City, the Federal Reserve Bank of New York is responsible for the Second District of the Federal Reserve System, which specifically oversees all of New York Stat, 12 northern counties in New Jersey, Fairfield County in Connecticut, the United States Virgin Islands and Puerto Rico.
• The Federal Reserve Bank of New York is responsible for implementing monetary policy and regulating financial institutions in the aforementioned regions. In addition, the Federal Reserve Bank of New York helps maintain the nation’s payment system. Of the 12 regional Federal Reserve Banks, the Federal Reserve Bank of New York is largest in regards to assets and the most active in regards to volume; as such, the Federal Reserve Bank of New York is often regarded as the most influential Reserve Bank in the United States.
Primary Responsibilities of the Federal Reserve Bank of New York:
• The Federal Reserve Bank of New York operates out of Manhattan’s Financial District; this area is where monetary policy for the United States is implemented. Although policy issues are decided in Washington, D.C. (by the Board of Governors of the Federal Reserve System) the influence and size of the Federal Reserve Bank of New York maintains primary authority in the implementation regarding the nation’s monetary supply.
• The New York Federal Reserve is a private bank responsible for conducting market operations, primarily the buying and selling of outstanding treasury securities in the country. More specifically, the Trading Desk is the post at the Federal Reserve Bank of New York where the managing of bond transactions takes place.
• The Federal Reserve Bank of New York is also responsible for carrying out and regulating exchange rate policy. The institution achieves this by buying and selling dollars at the discretion of the United States Treasury Office. As a result of this responsibility, the Federal Reserve Bank of New York is the only regional bank in possession of a permanent vote on the Federal Open Market Committee.
Organizational Structure of the Federal Reserve Bank of New York
• The current president of the Federal Reserve Bank of New York is William Dudley. The Federal Reserve Bank of New York formally began operating in 1914 under the leadership of President Benjamin Strong.
• The Federal Reserve Bank of New York, although larger and more influential than the other regional banks, utilizes the system’s uniform hierarchy: the bank possesses a three-class Board of Directors as well as the same organizational and legal structure as the other regional banks.
