DEFINITION of Federal Advisory Council
A group of 12 banking executives - one from each Federal Reserve District - that advises the Federal Reserve Board regarding the state of the banking industry and money supply. Positions on the Federal Advisory Council are determined by a voting process within each Federal Reserve District, with representatives often being elected to more than one term. Federal Advisory Council meetings take place at least quarterly in Washington D.C., with increasing frequency in times of financial crisis.
BREAKING DOWN Federal Advisory Council
The Federal Advisory Council is one of three formal bodies that advise the Federal Reserve Board on its operations, the others being the Consumer Advisory Council and the Thrift Institutions Advisory Board, which are comprised of executives from credit unions, saving and loans, and mutual banks. Of the three advisory councils, the Federal Advisory Council is considered the most influential because it provides the Federal Reserve Board with the broadest insight into the state of the banking system.