Why does the Federal Reserve Bank of New York play a special role with

Why does the Federal Reserve Bank of New York play a special role within the Federal Reserve System?

What will be an ideal response?

ANSWER

The New York district contains the largest banks in the country. The New York Fed supervises and examines these banks to insure their soundness and the safety of the nation’s financial system. The New York Fed conducts open market operations and foreign exchange transactions for the Fed and Treasury. The New York Fed belongs to the Bank for International Settlements, so its president and the chairman of the Board of Governors represent the U.S. at the monthly meetings of the world’s central banks. The New York Fed president is the only president of a regional Fed who is a permanent voting member of the FOMC.