Federal Reserve
Federal Reserve Districts:
The 12 Federal Reserve Banks and their 24 Branches are the operating arms of the Federal Reserve System. Each Reserve Bank operates within its own particular geographic area, or district, of the United States.[1]
Each Reserve Bank gathers data and other information about the businesses and the needs of local communities in its region. That information is then factored into monetary policy decisions by the FOMC and other decisions made by the Board of Governors.
| 1A: Boston | The Boston Fed serves the First District, which includes Connecticut (excluding Fairfield County), Massachusetts, Maine, New Hampshire, Rhode Island and Vermont. |
| 2B: New York | The New York Fed serves the Second District, which includes New York state, northern New Jersey, Fairfield County, Conn., Puerto Rico and the Virgin Islands. |
| 3C: Philadelphia | The Philadelphia Fed serves the Third District, which includes Delaware, southern New Jersey, and eastern and central Pennsylvania. |
| 4D: Cleveland | The Cleveland Fed serves the Fourth District, which includes Ohio, western Pennsylvania, eastern Kentucky and the northern panhandle of West Virginia. |
| 5E: Richmond | The Richmond Fed serves the Fifth District, which includes Maryland, Virginia, North Carolina, South Carolina, the District of Columbia and most of West Virginia. |
| 6F: Atlanta | The Atlanta Fed serves the Sixth District, which includes Alabama, Florida and Georgia, and portions of Louisiana, Mississippi and Tennessee. |
| 7G: Chicago | The Chicago Fed serves the Seventh District, which includes Iowa and most of Illinois, Indiana, Michigan and Wisconsin. |
| 8H: St. Louis | The St. Louis Fed serves the Eighth District, which includes Arkansas, eastern Missouri, southern Indiana, southern Illinois, western Kentucky, western Tennessee and northern Mississippi. |
| 9I: Minneapolis | The Minneapolis Fed serves the Ninth District, which includes Montana, North Dakota, South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. |
| 10J: Kansas City | The Kansas City Fed serves the Tenth District, which includes Colorado, Kansas, Nebraska, Oklahoma, Wyoming, northern New Mexico and western Missouri. |
| 11K: Dallas | The Dallas Fed serves the Eleventh District, which includes Texas, northern Louisiana and southern New Mexico. |
| 12L: San Francisco | The San Francisco Fed serves the Twelfth District, which includes Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, Utah and Washington, as well as Guam, American Samoa and the Northern Mariana Islands. |
Voting Rotation
Four FOMC votes rotate among 11 Federal Reserve bank presidents. The New York Fed president and the seven members of the Board of Governors are permanent voters. [2]
All 12 of the Reserve Bank presidents attend FOMC meetings and participate in FOMC discussions, but only the presidents who are Committee members at the time may vote on policy decisions.
2023 Committee Members
- Jerome H. Powell, Board of Governors, Chair
- John C. Williams, New York, Vice Chair
- Michael S. Barr, Board of Governors
- Michelle W. Bowman, Board of Governors
- Lisa D. Cook, Board of Governors
- Austan D. Goolsbee, Chicago
- Patrick Harker, Philadelphia
- Philip N. Jefferson, Board of Governors
- Neel Kashkari, Minneapolis
- Lorie K. Logan, Dallas
- Christopher J. Waller, Board of Governors
| FOMC Voting Rotation by Year, 2023-2030[3] | ||||||
| 2023 | Board of Governors | New York (2nd District) | Philadelphia (3rd District) | Chicago (7th District) | Minneapolis (9th District) | Dallas (11th District) |
| 2024 | Board of Governors | New York (2nd District) | Cleveland (4th District) | Richmond (5th District) | Atlanta (6th District) | San Francisco (12th District) |
| 2025 | Board of Governors | Boston (1st District) | New York (2nd District) | Chicago (7th District) | St. Louis (8th District) | Kansas City (10th District) |
| 2026 | Board of Governors | New York (2nd District) | Philadelphia (3rd District) | Cleveland (4th District) | Minneapolis (9th District) | Dallas (11th District) |
| 2027 | Board of Governors | New York (2nd District) | Richmond (5th District) | Atlanta (6th District) | Chicago (7th District) | San Francisco (12th District) |
| 2028 | Board of Governors | Boston (1st District) | New York (2nd District) | Cleveland (4th District) | St. Louis (8th District) | Kansas City (10th District) |
| 2029 | Board of Governors | New York (2nd District) | Philadelphia (3rd District) | Chicago (7th District) | Minneapolis (9th District) | Dallas (11th District) |
| 2030 | Board of Governors | New York (2nd District) | Cleveland (4th District) | Richmond (5th District) | Atlanta (6th District) | San Francisco (12th District) |
Fed Commentaries
- March 7,2023 Powell testimony with Congress: Federal Reserve Chair Jerome Powell said interest rates are likely to be higher than anticipated. "If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes," He said. [4]
- March 1, 2023: Minneapolis Federal Reserve Bank President Neel Kashkari said that he is open-minded to either 25 basis points or 50 basis points interest rate hikes in the next FOMC meeting. "To me, much more important than whether it’s 25 or 50 is what we signal in what’s called the dot plot." Kashkari added that the impact of rate hikes on the service sector has not been noticed. “We’re not yet seeing much of a sign of our interest-rate increases slowing down the services sector of the economy and that is concerning to me,” He said[5]. Kashkari is a voter at 2023 FOMC and one of its biggest hawks[6].
Additional notes:
- FED tools can only affect the demand side of the economy. Policy tools to influence supply is not under the FED control. Congress debated that until now rates has not influenced inflation because the reason for high inflation is not in the FED control, and instead they are only hurting the economy.
- Congress suggest to Powell that more modest budget spending is needed along with rate hikes, which is not happening yet.
- The past 12 times that unemployment has risen 1%, the economy has not been able to avoid a recession. The FED projections has unemployment going to 4.6%
- If unemployment goes up 1%, is vey difficult to stop it there. 11 out of the 12 recessions, the unemployment rose at least another 1%. This time it would put unemployment close to 6%
- Over the longer term, 4% wage increases are unsustainable due to lower productivity.
Meetings
See: https://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
Federal Reserve Economic Projections
Federal Reserve:Meetings/2023 February 01
Federal Reserve:Meetings/2023 March 22
Federal Reserve:Meetings/2023 May 3
Federal Reserve:Meetings/2023 June 14
Federal Reserve:Meetings/2023 July 26
Federal Reserve:Meetings/2023 September 20
Federal Reserve:Meetings/2023 November 1
Federal Reserve:Meetings/2023 December 13
Federal Reserve:Meetings/2024 January 31
Federal Reserve:Meetings/2024 March 20
Federal Reserve:Meetings/2024 June 12
References
- ↑ https://www.stlouisfed.org/open-vault/2022/nov/fomc-voting-rotation-explained
- ↑ https://www.federalreserve.gov/monetarypolicy/fomc.htm
- ↑ https://www.stlouisfed.org/open-vault/2022/nov/fomc-voting-rotation-explained
- ↑ https://www.cnbc.com/2023/03/07/fed-chair-powell-says-interest-rates-are-likely-to-be-higher-than-previously-anticipated.html?__source=androidappshare
- ↑ https://www.bloomberg.com/news/articles/2023-03-01/fed-s-kashkari-open-minded-on-quarter-or-half-point-march-hike
- ↑ https://edition.cnn.com/2023/01/30/economy/fed-fomc-2023-makeup/index.html#:~:text=This%20year%20the%20Federal%20Open,president%20of%20the%20Minneapolis%20Fed.