What Is the Federal Reserve Bank of Boston?
The Federal Reserve Bank of Boston is one of 12 reserve banks in the Federal Reserve System (FRS). The bank is responsible for the first district, which includes Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, and all of Connecticut except for Fairfield County.
- The Federal Reserve Bank of Boston comprises one of 12 reserve banks in the Federal Reserve System.
- The Boston Fed serves the first district, which covers Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, and all of Connecticut except for Fairfield County.
- Headquartered in Boston, there are no other branch offices in the first district.
Understanding the Federal Reserve Bank of Boston
The Federal Reserve Bank of Boston is responsible for executing the central bank's monetary policy by reviewing price inflation and economic growth, as well as by regulating the banks within its territory. It supports the Federal Reserve's mission to maintain the stability of the financial system, foster payment and settlement system safety and efficiency, and promote consumer protection and community development.
Like the 11 other banks in the FRS, the Federal Reserve Bank of Boston monitors electronic deposits and provides cash to banks within its district. The president of the Federal Reserve Bank of Boston is part of a rotation of bank presidents who, along with the seven governors of the Federal Reserve Board and the president of the Federal Reserve Bank of New York, meet to set open market operations. This is referred to as the Federal Open Market Committee (FOMC).
As with all reserve banks, the Federal Reserve Bank of Boston has a nine-member board of directors, six of whom are elected by member banks in the district. The remaining three are appointed by the Federal Reserve Board of Governors or the FRS itself. Its president is appointed to a five-year term, which may be renewed.
Characteristics and Organization
Kenneth C. Montgomery assumed the role of interim president and chief executive officer at the Federal Reserve Bank of Boston on Oct. 1, 2021, replacing former president Eric Rosengren, who had led the regional branch since 2007.
Over the years, the views of bank presidents and the research done by each bank have shaped their reputation within the FRS. At a national level, Montgomery leads the FRS' FedNow Service, which supports faster interbank payments, settlements, and clearing. He also oversees financial management strategies for the FRS' Financial Support Office.
Every bank has its own research staff that is responsible for conducting and publishing economic research related to Fed policy. Every quarter, the Federal Reserve Bank of Boston releases the New England Economic Indicators, a snapshot of employment and housing in the six-state Northeast region that comprises the first district. Each bank also tracks economic activity in its district, compiled in a publication known as the Beige Book, which is published eight times per year.