What is the 'Federal Reserve Bank Of Chicago'

The Federal Reserve Bank of Chicago is one of 12 reserve banks in the Federal Reserve System. The bank is responsible for the seventh district, whose territory includes Iowa and parts of the states of Indiana, Illinois, Wisconsin and Michigan. 

BREAKING DOWN 'Federal Reserve Bank Of Chicago'

The Federal Reserve Bank of Chicago 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. In addition, as outlined on the Federal Reserve website, it supports the U.S. central bank’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 Chicago provides cash to banks within its district, as well as monitoring electronic deposits. The president of the Federal Reserve Bank of Chicago 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 Chicago has a nine-member board of directors, six of which are elected by member banks in the district and the remaining three 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 of the Federal Reserve Bank of Chicago

The Federal Reserve Bank of Chicago has been led by Bank President Charles Evans since 2007. Like other Fed bank presidents, Evans publicly shares his policy views through media appearances and publication of economic reports and working papers put out by the bank. Over the years, the views of bank presidents and the research done by each bank have shaped their reputation within the Federal Reserve system. Evans, for example, disagreed with the Fed’s decision to raise the federal funds rate in December 2017 and March 2018 due to a lack of strong inflation signals.

The Federal Reserve Bank maintains the Money Museum at its headquarters in Chicago. The museum features a section on Alexander Hamilton, the first Secretary of the U.S. Treasury, as well as currency artifacts and interactive displays.

Every bank has its own research staff which is responsible for conducting and published academic-level economic research related to Fed policy. Every month, the Federal Reserve Bank of Chicago releases the Chicago Fed National Activity Index, a gauge of 85 monthly indicators. Each bank also has a staff that tracks economic activity in their district, compiled in a publication known as the Beige Book that is published eight times per year.

RELATED TERMS
  1. Federal Reserve Bank Of Boston

    The Federal Reserve Bank of Boston oversees banks in Massachusetts, ...
  2. Federal Reserve Bank Of Minneapolis

    The Federal Reserve Bank of Minneapolis is one 12 reserve banks ...
  3. 1913 Federal Reserve Act

    The 1913 Federal Reserve Act was U.S. legislation that created ...
  4. Regulation I

    Regulation I is a regulation stipulating that any bank that becomes ...
  5. Federal Reserve Bank Of Philadelphia

    The Federal Reserve Bank of Philadelphia is responsible for the ...
  6. Free Reserves

    Free reserves are the reserves a bank holds in excess of required ...
Related Articles
  1. Insights

    What Do the Federal Reserve Banks Do?

    These 12 regional banks are involved with four general tasks: formulate monetary policy, supervise financial institutions, facilitate government policy and provide payment services.
  2. Financial Advisor

    Why Banks Don't Need Your Money to Make Loans

    Contrary to the story told in most economics textbooks, banks don't need your money to make loans, but they do want it to make those loans more profitable.
  3. Personal Finance

    How the Federal Reserve Affects Your Mortgage

    The Federal Reserve can impact the cost of funds for banks and consequently for mortgage borrowers when maintaining economic stability.
  4. Insights

    Understanding How the Federal Reserve Creates Money

    Read about how the Federal Reserve actually targets and creates new money in the economy, and find out why the savings and loans system magnifies this process.
  5. Investing

    The Treasury and the Federal Reserve

    Find out how these two agencies create policies to manage the economy and keep it on an even keel.
  6. Personal Finance

    What is Fractional Reserve Banking?

    Fractional reserve banking is the banking system most countries use today.
  7. Insights

    7 Misconceptions About The Federal Reserve

    There are many fallacies about the Fed. The following misconceptions are among the most popular.
  8. Insights

    How Central Banks Control the Supply of Money

    A look at the ways central banks pump or drain money from the economy to keep it healthy.
RELATED FAQS
  1. Who decides when to print money in the U.S.?

    Learn the U.S. Treasury's Federal Reserve Bank's roles in the process of printing money in the United States. Read Answer >>
  2. Why do some people claim the Federal Reserve is unconstitutional?

    Learn why some people believe it was unconstitutional for the government to establish the Federal Reserve Bank and why they ... Read Answer >>
  3. How Central Banks Influence Money Supply

    Central banks use several different methods to increase (or decrease) the amount of money in the banking system. Learn more ... Read Answer >>
  4. What factors are the primary drivers of banks' share prices?

    Find out which factors are most important when determining the share price of banks and other lending institutions in the ... Read Answer >>
  5. How must banks use the deposit multiplier when calculating their reserves?

    Explore the relationship between the deposit multiplier and the reserve requirement, and learn how this limits the extent ... Read Answer >>
Trading Center