Two sentences later in the paragraph your quote came from: >As an independent institution, the Federal Reserve System has the authority to act on its own witho

Two sentences later in the paragraph your quote came from: >As an independent institution, the Federal Reserve System has the authority to act on its own without prior approval from Congress or the President. And later: >The twelve Federal Reserve banks provide the financial means to operate the Federal Reserve System. Each reserve bank is organized much like a private corporation so that it can provide the necessary revenue to cover operational expenses and implement the demands of the board. A member bank is a privately owned bank that must buy an amount equal to 3% of its combined capital and surplus of stock in the Reserve Bank within its region of the Federal Reserve System. *edit - Also, the source for your quote is cited as "BoG 2005", with a dead/nonexistent URL