Federal Reserve Bank Of Chicago

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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).




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RELATED FAQS
  1. How is the Federal Reserve audited?

    Contrary to conventional wisdom, the Federal Reserve is extensively audited. Politicians on the left and right of a populist ... Read Full Answer >>
  2. Who decides when to print money in the US?

    The U.S. Treasury decides to print money in the United States as it owns and operates printing presses. However, the Federal ... Read Full Answer >>
  3. Why do some people claim the Federal Reserve is unconstitutional?

    The U.S. Constitution does not mention the need for a central bank, nor does it explicitly grant the government the power ... Read Full Answer >>
  4. How can the federal reserve increase aggregate demand?

    The Federal Reserve can increase aggregate demand in indirect ways by lowering interest rates. Aggregate demand is a measure ... Read Full Answer >>
  5. How does the stock market react to changes in the Federal Funds Rate?

    The stock market reacts to changes in the federal funds rate in various ways depending on where it is in the business cycle. ... Read Full Answer >>
  6. When has the United States run its largest trade deficits?

    In macroeconomics, balance of trade is one of the leading economic metrics that determines the trading relationship of a ... Read Full Answer >>

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