Key Stats
- The Federal Reserve holds approximately $6.6 trillion in total assets as of late 2025.1
- The Fed supervises approximately 900 state member banks and 5,000 bank holding companies.
- More than one-third of U.S. commercial banks are members of the Federal Reserve System.
- The Federal Reserve System comprises 12 regional Federal Reserve Banks across the United States.2
The Federal Reserve is not owned by any single entity, individual, or government body. Instead, it operates as a unique hybrid institution blending public oversight with private participation. The 12 regional Federal Reserve Banks are technically owned by member commercial banks in their respective districts, which are required to purchase stock in their regional Fed bank. However, this ownership does not grant traditional shareholder control or profit-sharing rights.
As the central bank of the United States, the Federal Reserve plays a crucial role in managing monetary policy, regulating financial institutions, and maintaining economic stability. In late 2025, the Fed concluded its balance sheet reduction program that had been running since June 2022, bringing total assets to approximately $6.6 trillion. The institution continues to navigate complex economic conditions while fulfilling its dual mandate of maximum employment and price stability.
Who Owns The Federal Reserve?
The Federal Reserve ownership structure defies simple categorization. Established by the Federal Reserve Act of 1913, the Fed was designed as a compromise between those who favored private banking control and those who wanted government oversight.
The Hybrid Ownership Model
Member banks within each Federal Reserve district must purchase stock in their regional Federal Reserve Bank. This stock ownership, however, differs fundamentally from typical corporate shares. Member banks cannot trade this stock on public markets, and it does not grant voting rights on monetary policy decisions.
The stock pays a fixed dividend of 6% annually, and all remaining profits are remitted to the U.S. Treasury Department. This arrangement ensures that while private banks have a stake in the system, they do not control it or benefit disproportionately from its operations. The Federal Reserve System functions independently to serve the public interest rather than private shareholders, similar to how major financial institutions like JPMorgan Chase serve their stakeholders within regulatory frameworks.
Who Is on the Board of Directors for Federal Reserve?
The Board of Governors serves as the primary governing body of the Federal Reserve System, overseeing monetary policy and banking regulation from Washington, D.C.
Current Board Leadership
Jerome H. Powell serves as Chair of the Federal Reserve Board since February 2018, with his term extending through May 2026. Philip N. Jefferson serves as Vice Chair, confirmed in September 2023. Michelle W. Bowman holds the position of Vice Chair for Supervision since June 2025.
Governors with Economic Policy Expertise
Lisa D. Cook serves as a Governor with expertise in economic growth and innovation. Christopher J. Waller joined the Board in December 2020, chairing the Committee on Federal Reserve Bank Affairs and the Committee on Payments, Clearing, and Settlement.
Governors with Financial Background
Michael S. Barr serves as a Governor with experience in financial regulation. Stephen I. Miran was sworn in as the newest member in September 2025. The board structure ensures representation across financial, agricultural, industrial, and commercial interests, functioning with similar governance principles as major banks like Wells Fargo.
Federal Reserve Board of Governors Structure
History of Federal Reserve Co-founders
The Federal Reserve emerged from years of debate and financial crises that exposed weaknesses in the American banking system. The Panic of 1907 served as the catalyst for central banking reform.
The Aldrich Plan and Early Development
Senator Nelson W. Aldrich of Rhode Island organized a secretive meeting on Jekyll Island, Georgia in November 1910, bringing together prominent bankers including Paul Warburg. This gathering produced the framework that would become the Federal Reserve Act. The National Monetary Commission, which Aldrich chaired, presented the Aldrich Plan to Congress in 1912, though it faced opposition for giving too much power to bankers similar to modern Goldman Sachs.
Wilson, Glass, and Owen Shape the Final Act
President Woodrow Wilson worked with Representative Carter Glass of Virginia and Senator Robert Latham Owen of Oklahoma to craft legislation balancing government oversight with regional banking representation. Wilson signed the Federal Reserve Act into law on December 23, 1913, creating 12 regional Federal Reserve Banks while establishing a presidentially appointed Board of Governors for central oversight.
Largest Shareholders of Federal Reserve
Understanding Federal Reserve shareholders requires recognizing that ownership differs substantially from typical corporate structures. The regional Federal Reserve Banks are owned by member banks with unique limitations.
How Member Bank Ownership Works
Commercial banks that become members must purchase stock in their regional Federal Reserve Bank. National banks are required by law to join, while state-chartered banks may join voluntarily. Each member bank must hold capital stock equal to 6% of its combined capital and surplus.
This stock cannot be sold, traded, or used as collateral. Member banks receive a fixed 6% annual dividend, regardless of Federal Reserve profitability. Earnings beyond operational expenses are remitted to the U.S. Treasury.
Major Member Banks by Assets
The largest commercial banks serve as significant Federal Reserve member banks. Chase represents the largest domestic bank with over $3.8 trillion in consolidated assets. Citigroup operates Citibank as a major member institution, while U.S. Bancorp represents significant regional membership.
Top 5 U.S. Commercial Banks by Assets (Q3 2025)
Source: Federal Reserve Large Commercial Banks Report, September 2025
Regional Distribution of Ownership
Each of the 12 Federal Reserve districts has member banks that own stock in their regional Federal Reserve Bank. The Federal Reserve Bank of New York counts among its members some of the largest financial institutions globally. Regional banks like PNC Financial Services and Truist Financial Corporation participate as members, ensuring diverse regional representation in the Federal Reserve System.
FAQs
Is the Federal Reserve a government agency?
The Federal Reserve is an independent entity within the government. The Board of Governors is a federal agency, but the 12 regional Federal Reserve Banks are structured as private corporations with member bank ownership.
Can private individuals buy Federal Reserve stock?
No, only member commercial banks can own Federal Reserve stock. This stock cannot be traded publicly, sold to individuals, or used as collateral for loans.
Where does the Federal Reserve get its funding?
The Federal Reserve funds itself through interest on securities holdings, fees for services to banks, and interest on loans to member institutions. It does not receive congressional appropriations.
Who controls Federal Reserve monetary policy?
The Federal Open Market Committee controls monetary policy. It consists of the seven Board of Governors members plus five regional Federal Reserve Bank presidents on rotating terms.
Does the Federal Reserve pay taxes?
The Federal Reserve remits its net earnings to the U.S. Treasury after covering operating expenses and paying member bank dividends. In recent years, these remittances totaled billions of dollars annually.