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 and Vermont, and all of Connecticut except for Fairfield County.
- The Federal Reserve Bank of Boston comprises one of twelve reserve banks in the Federal Reserve System.
- The Boston Fed serves the first district, which covers Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont; and all but Fairfield County in Connecticut.
- 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 reserve banks, 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, 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 reserve bank itself. Its president is appointed to a five-year term, which may be renewed.
Characteristics and Organization
Bank president Eric Rosengren has led the Federal Reserve Bank of Boston since 2007. Like other Fed bank presidents, Rosengren shares his policy views through media appearances and the publication of economic reports and working papers. Over the years, the views of bank presidents and the research done by each bank have shaped their reputation within the Federal Reserve system. Rosengren has called for a flexible inflation target rather than the Fed's current 2% benchmark, warning the central bank could fall behind the inflation curve and be forced to raise rates sharply, sending the economy into recession.
Every bank has its own research staff which 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 that is published eight times per year.