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      -  Full report (1.60 MB PDF) 
      -  Monetary Policy and Economic Developments           -  (275 KB PDF) 
        -  Monetary Policy and the Economic Outlook 
        -  Economic and Financial Developments in 2006 and Early 2007 
        -  Monetary Policy Report of July 2006 
      -  Federal Reserve Operations           -  (314  KB PDF) 
        -  Banking Supervision and Regulation 
        -  Consumer and Community Affairs 
        -  Federal Reserve Banks 
        -  The Board of Governors and the Government Performance and Results Act 
        -  Federal Legislative Developments 
      -   Records           -  (299 KB PDF) 
        -  Record of Policy Actions of the Board of Governors 
        -  Minutes of Federal Open Market Committee Meetings 
        -  Litigation 
      -   Federal Reserve System Organization           -  (101 KB PDF) 
        -  Board of Governors 
        -  Federal Open Market Committee 
        -  Advisory Councils to the Board of Governors 
        -  Federal Reserve Banks and Branches 
        -  Members of the Board of Governors, 1913-2006 
      -  Statistical Tables           -  (118 KB PDF) 
        -  Statistical Tables List 
      -   Federal Reserve System Audits          -  (361 KB PDF) 
        -  Audits of The Federal Reserve System 
        -  Board of Governors Financial Statements 
        -  Federal Reserve Banks Combined Financial Statements 
        -  Office of Inspector General Activities 
        -  Government Accountability Office Reviews 
      -   Maps of the Federal Reserve System           -  (87 KB PDF) 
        -  The Federal Reserve System 

##       Letter of Transmittal      (113 KB PDF)

Board of Governors of the Federal Reserve System      Washington, D.C.

 June 2007

 The Speaker of the House of Representatives: 

Pursuant to the requirements of section 10 of the Federal Reserve Act,      I am pleased to submit the ninety-third annual report of the      Board of Governors of the Federal Reserve System.

 This report covers operations of the Board during calendar year 2006.

Sincerely, 

Ben Bernanke       Chairman 

##       Overview of the Federal Reserve

As the nation's central bank, the Federal      Reserve System has numerous, varied      responsibilities:
      - conducting the nation's monetary policy        by influencing monetary and credit        conditions in the economy
      - supervising and regulating banking institutions,        to ensure the safety and        soundness of the nation's banking and        financial system and to protect the        credit rights of consumers
      - maintaining the stability of the financial        system and containing systemic        risk that may arise in financial markets 
      - providing financial services to depository        institutions, the U.S. government,        and foreign official institutions 

 The Federal Reserve is a federal system      composed of a central, governmental      agency--the Board of Governors--and twelve regional Federal Reserve      Banks. The Board of Governors, located      in Washington, D.C., is made up of      seven members appointed by the President      of the United States and supported      by a staff of about 1,850. In addition      to conducting research, analysis, and      policymaking related to domestic and      international financial and economic      matters, the Board plays a major role      in the supervision and regulation of the      U.S. banking system and administers      most of the nation's laws regarding consumer      credit protection. It also has broad      oversight responsibility for the nation's      payments system and the operations and      activities of the Federal Reserve Banks. 

 The Federal Reserve Banks, which      combine public and private elements,      are the operating arms of the central      banking system. They carry out a variety      of System functions, including operating      a nationwide payments system;      distributing the nation's currency and      coin; under authority delegated by the      Board of Governors, supervising and      regulating bank holding companies and      state-chartered banks that are members      of the System; serving as fiscal agents      of the U.S. Treasury; and providing a      variety of financial services for the Treasury,      other government agencies, and      other fiscal principals.

 A major component of the Federal      Reserve System is the Federal Open      Market Committee (FOMC), which is      made up of the members of the Board of      Governors, the president of the Federal      Reserve Bank of New York, and presidents      of four other Federal Reserve      Banks, who serve on a rotating basis.      The FOMC establishes monetary policy      and oversees open market operations,      the Federal Reserve's main tool for influencing      overall monetary and credit      conditions. The FOMC sets the federal      funds rate, but the Board has sole authority      over changes in reserve requirements      and must approve any change in      the discount rate initiated by a Reserve      Bank.       Two other groups play roles in the      functioning of the Federal Reserve: depository      institutions, through which      monetary policy operates, and advisory      councils, which make recommendations      to the Board and the Reserve Banks      regarding System responsibilities.       All federally chartered banks are, by      law, members of the Federal Reserve      System. State-chartered banks may become      members if they meet Board      requirements. 

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