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Federal Reserve System: Fiscal Government Policy

What is the role of Federal Reserve System and of the fiscal policy of the government?

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The Federal Reserve System is a quasi-governmental banking system. Its composition is as follows:
(1) Presidentially-appointed Board of Governors of the Federal Reserve System in Washington, D.C.
(2) The Federal Open Market Committee;
(3) 12 regional Federal Reserve Banks located in major cities throughout the nation; and (4) numerous private member banks, which own varying amounts of stock in the regional
Federal Reserve Banks.
http://www.federalreserveonline.org/ as retrieved on 7 Jan 2007 12:30:14 GMT.

(Wikipedia)
Ben Bernanke serves as the current Chairman of the Board of Governors of the Federal Reserve System. The Federal Reserve System is an independent entity within the government, having both public purposes and private aspects. It's an independent authority as its financially independent and also has authority to take the decisions on its own. But it has to work within the framework of the objectives of the government.

Role of Federal reserve
The Federal Reserve controls the three tools of monetary policy--open market operations, the discount rate, and reserve requirements. The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national economic goals. The Federal Reserve Act of 1913 gave the Federal Reserve responsibility for setting monetary policy.
The Board of Governors of the Federal Reserve System is responsible for the discount rate and reserve requirements, and the Federal Open Market Committee ...

Solution Summary

This solution provides details on the federal reserve system in regard to fiscal government policy.

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