Alaska and the Federal Reserve Bank: bringing Alaska's issues to the Federal Reserve through an Alaskan board member.

• Author: Lawer, Betsy

I carry a map to all Federal Reserve Bank meetings. The map depicts the size of Alaska compared to the rest of the United States--to scale. It brings an Alaska perspective to the table for national monetary policymaking and often educates delegates of Alaska's immensity.

The Federal Reserve, the central bank of the United States, was founded by Congress in 1913 to provide the nation with a safer, more flexible and more stable monetary and financial system.

Over the years, its roles have evolved and expanded. Today, the Fed has four primary responsibilities: influencing the supply of money and credit (monetary policy); regulating and supervising bank holding companies and certain commercial banks; providing payment services to depository financial institutions (check processing, cash services, electronic funds transfers); and serving as fiscal agent for the U.S. government, or in other words, serving as the nation's bank.

Monetary policymaking reflects national/regional, public/private and independent characteristics. The tools the Fed uses to conduct policy are open-market operations--federal funds rate and the discount rate. With these tools, the Fed can affect credit conditions in the economy and achieve both long- and short-run goals, which influence people's demand for goods and services, and ultimately economic performance.

By using illustrations such as the map, members see that less than 1 percent of the Arctic National Wildlife Refuge, an area about the size of Washington, D.C.'s, Dulles International Airport, would be affected by oil and gas exploration--giving delegates a reference they can easily relate to.

Alaskans also can easily relate to decisions made by the Fed. The string of mortgage rate decreases this year directly affected many Alaskans. They had the opportunity to refinance at lower rates, which meant lower payments, and in turn stimulated the economy right here at home. Another event that brought the Fed home was during Y2K, when the Fed made sure banks within the state of Alaska had enough money to carry the community in the event of a catastrophe.

The Federal Reserve System is divided into 12 districts. Each district is served by a regional reserve bank. The Federal Reserve Bank of San Francisco, also known as the 12th District, is geographically the largest district in the Fed System and encompasses the nine western states, including Alaska. The San Francisco Fed has branches in Los Angeles, Salt Lake City...