Who is the Federal Reserve | What does the Federal Reserve do
(1) Who owns the Federal Reserve System?
If it’s a private bank, presumably it’s privately owned.   And, if its privately owned, its private owners presumably profit from their ownership.   So, who owns the System, and how do they profit from it?

The System is owned, or can be owned by three sets of stockholders:
(1) Banks in the System must contribute 6% of their contributed capital and retained earnings on an ongoing basis in exchange for stock.
(2) The public can buy stock in $100 increments up to $25,000 per individual.
(3) The US Government can buy stock if the System is in need of additional capital.

Categories 2 and 3 are non-voting stock.  The System isn’t in it for the profit.It was established in 1913 and operates under the authority of the Federal Reserve Act, as amended.  It’s four responsibilities include;
(1) establishing the System
(2) to afford a means of re discounting commercial paper
(3) establish the supervision of banks in the US
(4) Other duties

Think of it as a trading company in the Japanese tradition.  It provides banks with the liquidity they need to stay open daily.  The System buys up the commercial paper (90 day maturity) banks issue that tie up their liquidity.  The System provides new cash for old, lends money to banks in a liquidity bind and requires banks to charge off bad debts and holds them accountable to strict accounting standards.  It also insures deposits, operates as a bond trader for the Treasury and a myriad of other duties such as buying up commercial debts and replacing cash in the market via its open market committee and setting rates on short term debt transactions between banks. 

(2) Is the Federal Reserve System owned by other private banks who are system members?
Yes
Do private banks, for example, purchase equity interests in the Federal Reserve System?
Yes

If so, does the System pay them dividends or interest or what on their equities in the System?
The System pays a dividend of 6% established by law.  After paying its expenses, the System turns the rest of its earnings over to the U.S. Treasury.

(3) From whence does the Federal Reserve System get its capital?
Capital is obtained from the three categories of stockholders discussed above. 

Does its capital stem exclusively from member private banks purchasing the System’s equity issues?

It does but it doesn’t have to.  It can go to the public or the US Government. 

Or, as I suspect, does the System get much or most of its capital from the U.S. Mint’s printing presses?

No it does not.  It serves as a conduit to introduce fresh cash into the system in exchange for cash retired by its members.

(4) When the System ”pumps billions of dollars into the financial system”, whose dollars is it “pumping”?

It is exchanging debt for cash. 

Presumably, these “pumped” dollars aren’t the dollars of the System’s private member banks, because its private member banks are the recipients into whose capital the “billions of dollars” are required to be ”pumped”.

The money is not being given away it is exchanged for debt which is then repaid.  I seriously doubt the first real dollar is used, it is all done electronically.

So, whose “billions of dollars” are being “pumped”?
If push came to shove it would be the capital of the members.

Is it “billions of dollars” from the U.S. Mint’s printing presses?
No.

And, if so, what’s the functional relationship between the U.S. Mint devaluing the dollars in my pocket and the dollars which wind up either in the Federal Reserve System’s pockets or the pockets of its private member banks?

The US Mint does not devalue the dollars in your pocket.  The market price of goods and services simply goes up and your dollar buys less.  The System turns over its profits to the Government, the private member banks make 6% on their investment.

In other words, who really profits from whatever Holy Money Machine is increasing the Nation’s money supply (either because it’s grown too small to conduct the society’s business or because private banks have screwed up and need the Government to “pump” their liquidity)?

Profit is not the intent from open market transactions, stimulating the economy without triggering inflation is the intent.  Inflation, by the way is not so bad.  If you are in investments, such as real estate you can do real well.  The value of your home will go up and conversely the amount you owe will decrease.  Rich liquid investors don’t worry about inflation, they simply change their strategy to constantly reinvest at the higher interest rates.  People on fixed incomes or those who cannot raise their own prices (or wages) to keep up are the ones that lose big time.  If we had a bout of 15% inflation your house would go up 15%, your debt would drop 15% and your inflation adjusted income would go up 15%.  Not bad.  Also the national debt would go from $6 trillion to $5.1 trillion without paying a dime. 

Correspondingly, who really picks up the tab?
There is no tab and quite possibly a benefit.

The devalued dollars in my pocket?
Cash investments, like money in your pockets is a bad investment in inflationary times.

The lending community in general (which, functionally, is to say the borrowing community in general)?

The Government (which, functionally, is to say the taxpayers)?

(5) Who pays the System’s expenses and by what market mechanism is its officers’ remuneration determined?
The System pays its own expenses and reports annually to Congress and to independent auditors concerning its salary structure.

Presumably the System has no competition, so what determines its operators’ rewards?
See above.

(6) Why is a central private bank, rather than the U.S. Treasury, the prime abiter of the Nation’s financial destiny?
It isn’t, it reports twice yearly to Congress on its strategy.

Who elected the members of the System’s Board of Governors, and why are they in control of the Nation’s financial destiny?

The seven members of the Board of Governors of the Federal Reserve System are nominated by the President and confirmed by the Senate.  A full term is fourteen years. One term begins every two years, on February 1 of even-numbered years.  A member who serves a full term may not be reappointed.  A member who completes an unexpired portion of a term may be reappointed.  All terms end on their statutory date regardless of the date on which the member is sworn into office.

The Chairman and the Vice Chairman of the Board are named by the President from among the members and are confirmed by the Senate.  They serve a term of four years. A member’s term on the Board is not affected by his or her status as Chairman or Vice Chairman.

They do not control the Nation’s financial destiny.  The Nation’s financial destiny is controlled by Congress.
© 2007, Choice Real Estate, Inc. & Choice Real Estate of VA, Inc., & Choice Finance®
The Fed is expected to cut rates again when it meets on the 21st.  This will immediately reduce the prime interest rate on Home Equity lines of credit, however, fixed mortgage rates may actually stay the same or go up slightly.  If you are thinking of refinancing, lock in a low current rate before they start going up again.