Financial Update (April-June 2000)
New Fed Video
New Video Tells Fed’s Story
oney — it certainly does make the world go around. And the reason it’s able to do so is that we trust these little pieces of paper, says well-known radio and television commentator Charles Osgood, holding up a $20 bill. Thus begins a new video that tells the story of how the Federal Reserve System does its work.
Building on this theme of trusting our money, The Fed Today explains that the Federal Reserve System was created by an act of Congress in 1913 to establish and maintain the public’s confidence in the U.S. monetary and banking system. That mission has grown over time to include responsibility for providing a stable, healthy and growing economy.
The video also discusses the Fed’s public/private structure as a decentralized central bank, with the Board of Governors representing the public side and the 12 Federal Reserve Banks representing the private sector.
The Fed’s three main functions — setting monetary policy, supervising and regulating banks, and providing financial services for financial institutions and the government — are also addressed. The discussion of monetary policy includes a look at the Federal Open Market Committee and how it guides open market operations. The video also examines the Fed’s role in the payments system and how that system has evolved through technological advances.
The Fed Today was commissioned by the Federal Reserve System to serve as an educational tool for teachers and the general public. To order the free 15-minute video from the Atlanta Fed, call 404-498-8020.