BROWSE

FED Pass

What is 'FED Pass'

An action taken by the Federal Reserve that looks to increase the availability of credit by moving additional reserves into the banking system. The supply of loans is increased as more funds are injected into major banks, typically allowing lenders to originate more mortgages at lower interest rates.

Explaining 'FED Pass'

The FED Pass is an aspect of monetary policy that aims to affect the amount of money in circulation and increase lending. This action could be used as a method to combat economic difficulties, such as a credit crunch.


Further Reading


The fed and interest rates-a high-frequency identification
pubs.aeaweb.org [PDF]
… He had never taken a formal economics course in his life, though he did have an MBA from Harvard … The president had to make a decision about the Fed chairmanship and wanted to know whether Volcker was inter … If you are interested, you should tell me, and I'll pass it on to him …

Retrospectives: economists and the Fed: beginningsRetrospectives: economists and the Fed: beginnings
www.aeaweb.org [PDF]
… He had never taken a formal economics course in his life, though he did have an MBA from Harvard … The president had to make a decision about the Fed chairmanship and wanted to know whether Volcker was inter … If you are interested, you should tell me, and I'll pass it on to him …

The housing bubble: How much blame does the fed really deserve?The housing bubble: How much blame does the fed really deserve?
aresjournals.org [PDF]
… He had never taken a formal economics course in his life, though he did have an MBA from Harvard … The president had to make a decision about the Fed chairmanship and wanted to know whether Volcker was inter … If you are interested, you should tell me, and I'll pass it on to him …



Q&A About FED Pass


Does it have shareholders like a corporation?

No; it does not have shareholders like a corporation because it is an independent government agency whose members are appointed rather than elected .

What is a FED Pass?

A FED Pass is an action taken by the Federal Reserve that looks to increase the availability of credit by moving additional reserves into the banking system.

What are some other names used for this system?

Other names include "the Fed", "the federal reserve", "central bank", or simply "the bank".

How does a FED Pass affect lending?

The supply of loans is increased as more funds are injected into major banks, typically allowing lenders to originate more mortgages at lower interest rates.

Who established three key objectives for monetary policy?

The U.S. Congress established three key objectives for monetary policy in its passage of legislation that created this system

How many people serve on its board ?

There are seven governors who serve staggered 14-year terms , along

What does "" mean?

"" means that it has no fixed capital stock; rather its capital is determined endogenously through its profits and losses as well as changes in ownership resulting from share buybacks or sales.

Is it privately owned ?

No; it is not privately owned because it is an independent government agency whose members are appointed rather than elected .

What is the Federal Reserve System?

The Federal Reserve System (also known as the Federal Reserve or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to the desire for central control of the monetary system in order to alleviate financial crises. Over time, events such as the Great Depression in the 1930s and the Great Recession during 2008-2009 have led to further expansion of roles and responsibilities by both Congress and by actions taken by presidents at times when they hold emergency powers under various provisions of law.

What could be used as a method to combat economic difficulties, such as a credit crunch?

A FED Pass could be used as a method to combat economic difficulties, such as a credit crunch.