Federal Reserve Districts

A Federal Reserve Bank is a regional bank of the Federal Reserve System, the central banking system of the United States. There are twelve in total, one for each of the twelve Federal Reserve Districts that were created by the Federal Reserve Act of 1913. The banks are jointly responsible for implementing the monetary policy set forth by the Federal Open Market Committee, and are divided as follows:

Some banks also possess branches, with the whole system being headquartered at the Eccles Building in Washington, D.C.

Alexander Hamilton, the first Secretary of Treasury, started a movement in 1780 advocating for the creation of a central bank. The Bank Bill created by Hamilton was a proposal to institute a national bank in order to improve the economic stability of the nation after its independence from Britain. Although the national bank was to be used as a tool for the government, it was to be privately owned. Hamilton wrote several articles providing information regarding his national bank idea where he expressed the validity and "would be" success of the national bank based upon: incentives for the rich to invest, ownerships of bonds and shares, being rooted in fiscal management, and stable monetary system.

In response to this, the First Bank of the United States was established in 1791, its charter signed by George Washington. The First Bank of the United States was headquartered in Philadelphia, but had branches in other major cities. The Bank performed the basic banking functions of accepting deposits, issuing bank notes, making loans and purchasing securities.

When its charter expired 20 years later, the United States was without a central bank for a few years, during which it suffered an unusual inflation. In 1816, James Madison signed the Second Bank of the United States into existence. Then, in 1833, before that bank's charter expired, President Jackson removed the government funds as part of the Bank War, and the United States went without a central bank for 40 years.

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