I will comment today on the structure of the Federal Reserve System, with particular attention to the specific roles of the regional Federal Reserve Banks in three areas: monetary policy, supervisory and regulatory authority, and operation of the payments mechanism. I will give my views on some of the provocative questions frequently raised about the Fed Why should it be independent and not subject to greater control by the Administration or the Congress? Why should there be twelve semiautonomous reserve banks oftentimes engaged in duplication of effort in the field of economic research? Why shouldn't the reserve banks simply be regional branches of a Washington headquarters? Why should Federal Reserve Bank presidents have a vote on monetary policy when they are not appointed by the president of the United States?