 Seal of the Federal Reserve Bank | |
| Governor | jJoshuaTheGreat |
|---|---|
| Lieutenant-Governor | Robidemon2 |
| Other Members | xSyncx, Soundi83, xXTheoryXx ex officio |
| Established | 24 November 2023 |
| Key document | Federal Reserve Act |
The Federal Reserve Bank (FRB) is the central bank of Redmont. It is mandated with managing the health of the economy, operating independently, and being transparent about its operations.[1]
History
The FRB is the second central bank in Redmont, after the creation and repeal of the Commonwealth Reserve Bank. It was first established by the Federal Reserve Act of 2023, which was authored and signed by President xlayzur on 17 December 2023. This law would only be amended twice before being repealed and replaced with the Federal Reserve Act of 2025, which was authored by Omegabiebel, Gribble19, and CaseyLeFaye and signed on 10 August 2025 by President Kaiserin_.
The Federal Reserve Act of 2025 made many changes to the operation of the FRB. Perhaps most notably, it:
- Gave the FRB the power to set regulations for the spawning of resources.
- Required nominees to be nominated by the House, rather than the president.
- Added reconfirmation and term length limits.
- Required conflicts of interests to be disclosed publicly.
Governance
The FRB is governed by a board of 5 members, 4 of those being chosen by Congress (called "Sitting Board Members"), and 1 being the secretary of the Department of Commerce (DOC), ex officio.
Sitting Board Members are nominated by majority in the House, and confirmed via supermajority in the Senate. Once a motion to nominate a member is proposed, a joint hearing for that nominee is opened. Sitting Board Members serve terms of up to 4 months that start and end 2 months apart, similar to how seats in the Senate work, divided into two classes. They can be reconfirmed to serve another term within 7 days of the expiration of their term.
The secretary of the DOC, while considered a full board member, cannot vote unless to break a tie, and is ineligible to become governor or lieutenant-governor.
Members of Congress, the secretary of the DOC, the president, and the vice-president are all ineligible to become sitting board members, unless given an exclusion by two-thirds of both chambers of Congress.
The governor of the FRB has the executive authority and is the principal representative of the FRB. They may delegate their powers and responsibilities to the lieutenant governor. The governor's duties include ensuring the good management of the FRB, ensuring compliance with all laws and regulations, and executing the laws and policy within the purview of the FRB. Both the governor and lieutenant governor are chosen from an internal election by majority vote.
Each member has 1 vote, and there is a minimum quorum of 2 votes in order for any decision to be made.
Oversight
Each month, the FRB is required to publicly release a report containing what assets and liabilities they hold, the health of the economy, any decisions they made, and any money or material resources that were spawned or despawned by them. They are also required to keep full accounting books.
Failure of a sitting board member to publicly report a conflict of interest they hold constitutes an act of corruption.
The Senate appoints an inspector general by majority vote. The current inspector general is Bardiya_King.[2] The inspector general cannot be a member of the FRB or of a financial institution. The inspector general is granted unfiltered access to view all internal FRB communications and is responsible for holding the board accountable and that they are acting in the interests of the Commonwealth. Each month, they are required to publish a public audit report to show that the FRB is meeting their obligations and operating lawfully.
Powers
The FRB has the power to enact policy regarding its internal structure and the use and delegation of powers granted to it, which are:
- To lend, borrow, buy, sell, hold, receive, and distribute monetary or material resources.
- To lend, borrow, buy, sell, hold, receive, distribute, and create financial instruments. However, the FRB cannot create, issue or engage in trading financial instruments contingent on the value of real-world assets.
- To have the exclusive authority to set the rewards obtained by voting, including but not limited to the vote crate and the vote shop.
- To have the exclusive authority to set regulations for the spawning of resources by supermajority Board vote.
- To have the exclusive authority to set regulations to compensate for the spawning of resources through the real-life shop. However, the FRB has no authority over the real-life shop or the products offered therein.
- To have the exclusive authority to set monetary policy, including pegging the currency.
- No individual, person, legal entity, institution, company, or organization (except staff) may spawn in money or material resources without FRB approval.
- To have the authority to request (from staff) data regarding staff-spawned resources.
- To have the authority to despawn its or the government's money or material resources with a supermajority board vote.
- To have the authority to determine material resource requirements for functions, activities, practices, operations, infrastructure, buildings, or equivalents of these of the Government by majority Board vote.
- To have exclusive authority to set bonus materials received when gathering material resources.
- To set reserve requirements and to require commercial banks and credit unions to hold this reserve within the Reserve Bank.