The Federal Reserve Act creates an advisory council consisting of as many members as there are Federal Reserve districts. It directs the board of directors of each Federal Reserve bank to select annually from its own district one member of this council. The council shall meet at least four times a year at Washington, D. C, and oftener if called by the Federal Reserve Board. The council at its own discretion may hold additional meetings at Washington or elsewhere.

The council is, as its name implies, simply an advisory body which confers directly with the Federal Reserve Board on general business conditions and may call for information or make recommendations concerning Federal Reserve banking operations to the Federal Reserve Board.