DEFINITION of 'Federal Reserve Bank Of Chicago'
The Federal Reserve Bank responsible for the seventh district of the Federal Reserve. It is located in Chicago, IL. Its territory includes parts of the states of Indiana, Illinois, Wisconsin and Michigan, as well as the entire state of Iowa.
BREAKING DOWN 'Federal Reserve Bank Of Chicago'
The Federal Reserve Bank of Chicago is one of twelve Reserve Banks within the Federal Reserve System. It is responsible for executing the central bank's monetary policy by reviewing price inflation and economic growth, and by regulating the banks within its territory. It provides cash to banks within its district and monitors electronic deposits.
The president of the Federal Reserve Bank of Chicago, along with the presidents of the other Banks and the seven governors of the Federal Reserve Board, meet to set interest rates eight times anually. This is referred to as the Federal Open Market Committee (FOMC).