What Is the Federal Reserve Bank of Minneapolis?
The Federal Reserve Bank of Minneapolis is one of 12 reserve banks in the Federal Reserve System (FRS). The bank is responsible for the ninth district whose territory includes its home state of Minnesota, Montana, North Dakota and South Dakota as well as parts of Wisconsin and Michigan.
- The Federal Reserve Bank of Minneapolis comprises one of twelve reserve banks in the Federal Reserve System.
- The Minneapolis Fed serves the NinthFederal Reserve District, which covers the states of Minnesota, Montana, North Dakota, and South Dakota; the Upper Peninsula of Michigan; and 26 counties in northern Wisconsin.
- Headquartered in Minneapolis, MN, a branch office is also located in Helena, MT.
Understanding the Federal Reserve Bank of Minneapolis
The Federal Reserve Bank of Minneapolis is responsible for executing the central bank’s monetary policy by reviewing price inflation and economic growth and by regulating the banks within its territory. In addition, as outlined on the Federal Reserve website, it supports the U.S. central bank’s mission to maintain the stability of the financial system, foster payment and settlement system safety and efficiency and promote consumer protection and community development.
Like the 11 other reserve banks, the Federal Reserve Bank of Minneapolis provides cash to banks within its district, as well as monitoring electronic deposits. The president of the Federal Reserve Bank of Minneapolis is part of a rotation of bank presidents who, along with the seven governors of the Federal Reserve Board, meet to set open market operations. This is referred to as the Federal Open Market Committee (FOMC).
As with all reserve banks, the Federal Reserve Bank of Minneapolis has a nine-member board of directors, six of which are elected by member banks in the district and the remaining three appointed by the Federal Reserve Board of Governors or the reserve bank itself.
Characteristics and Organization
The Federal Reserve Bank of Minneapolis is the third-largest bank in terms of the territory it controls, behind the Federal Reserve Bank of San Francisco and the Federal Reserve Bank of Kansas City. Bank notes printed by Federal Reserve Bank of Minneapolis are denoted by the mark “I9”, representing the ninth district (I is also the ninth letter of the alphabet).
The Federal Reserve Bank of Minneapolis has been led by Bank President Neel Kashkari since 2016. Like other Fed bank presidents, Kashkari publicly shares his policy views in the media and through publication of bylined articles. Over the years, the views of bank presidents and the research done by each bank have shaped their reputation within the Federal Reserve system. Kashkari, for example, has dissented from the FOMC’s decisions to raise interest rates several times since taking office and is the only Fed Bank president to communicate his views via Twitter.
Every fed bank has its own research staff which is responsible for conducting and published academic-level economic research related to Fed policy. Each bank also has a staff that tracks economic activity in their district, compiled in a publication known as the Beige Book that is published eight times per year.