What is the Federal Advisory Council?
The Federal Advisory Council is made up of 12 representatives from the banking industry, one from each of the 12 Federal Reserve Districts. The council consults with and advises the Federal Reserve Board of Governors. The council meets in Washington, D.C., four times a year.
Deeper definition
Members of the Federal Advisory Council are chosen by the 12 Federal Reserve banks. Each bank selects one person to represent its district on the council. Council members usually serve three one-year terms.
The Federal Advisory Council meets with the Fed’s Board of Governors four times a year — on the first Friday of February, May, September and December. The schedule may change, depending on the availability of the Board or the council.
The council and the Board of Governors discuss current financial and business conditions and make recommendations for potential policy changes. The council also does research for the Board of Governors. The council doesn’t have the authority to make policies, but its input and advice do influence matters that are within the Board of Governors’ jurisdiction.
Federal Advisory Council example
Given the important role of the Federal Advisory Council to report on the state of the banking industry and the money supply, its recommendations are given the utmost weight, especially in times of financial crisis.
Minutes of the meetings held by the Federal Advisory Council are recorded and made available to the public at the website of the Federal Reserve. At its September 2017 meeting, the council discussed the condition of and outlook for the overall financial markets, particularly loans for small and medium-scale businesses, commercial and residential real estate, construction, corporations, agriculture, and consumer loans and mortgages.
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