One picture to understand the Federal Reserve 🏛️‼ ️ Many brothers have questions about why Trump ordered the Federal Reserve not to cut interest rates? In order to answer this question, I have specially created this picture for everyone to understand! Firstly, it should be understood that the Federal Reserve is an independent executive agency accountable to Congress. To put it simply, the consortium initially designed a system to protect their own interests in order to prevent any president from losing control of their ambitions. At the same time, as the decision-making body for US dollar monetary policy, the Federal Reserve determines the interest rate and issuance of the US dollar. So, how does the independence of the Federal Reserve manifest? The Federal Reserve is an independent institution, not only independent of the US government, but also independent of Congress, reflected in: 1. The shareholders of the Federal Reserve are over 3000 member banks; 2. The Federal Reserve is not a part of the government and is politically independent of the White House; 3. The Federal Reserve does not accept funding from Congress and is financially independent of Congress; 4. The members of the Federal Reserve Board serve a term of up to 14 years, spanning several presidential and congressional terms, to ensure their independence. Therefore, in terms of ownership, the Federal Reserve is not state-owned. However, the Federal Reserve has close ties with the US government 1. Members of the Federal Reserve Board, nominated by the President and appointed by the Senate; 2. Senior employees of the Federal Reserve are appointed by the government; 3. The Federal Reserve is responsible for formulating and implementing monetary policy, supervising member banks, and overseeing the national payment system; 4. 94% of the Federal Reserve's annual profits must be handed over to the Treasury Department; 5. The Federal Reserve needs to be subject to congressional oversight, and Congress has the power to adjust the Federal Reserve's powers; 6. The Federal Reserve needs to coordinate with the White House to formulate financial and monetary policies. Therefore, in terms of functionality, the Federal Reserve is similar to a government agency. Overall, the Federal Reserve is a dual organizational structure consisting of the federal government and non-profit organizations in the United States. The Federal Reserve has more independent and autonomous space, and the actual control of the Federal Reserve by the US government is not significant. This organizational form ensures the fairness of the Federal Reserve.