DepositAccounts.com features a nice basic educational piece, "Overview of the Federal Reserve". It says, "The history of the Federal Reserve has its roots in the country's long history of paper currency. Massachusetts Bay Colony issued its own paper currency in 1690; this is widely considered the first 'American' paper currency. Notes were in circulation from other colonies as well -- and not all the currency was backed by gold or silver. Even the Continental Congress tried to issue a unified currency, not backed by gold or silver, in 1775.... The Federal Reserve is more than just a single building. It is an entire system. The Federal Reserve System has aspects that are both public and private. The Federal Reserve makes decisions about monetary policy without permission from the government, getting its authority from the 1913 act that created it. However, the seven members of the Board of Governors are appointed by the president and confirmed by the Senate. Terms are 14 years long and staggered. The Chairman of the Board, and the Vice Chairman, are appointed (from the sitting governors) to serve four year terms in those positions. The president can re-nominate Chairs as many times as desired during their terms on the Board."
