The US Federal Reserve Bank, commonly referred to as the Federal Reserve or simply the Fed, is the central banking system of the United States. It is an independent entity established by Congress in 1913, responsible for conducting and overseeing monetary policy in the country.
The primary objective of the Federal Reserve is to promote and maintain a stable and healthy economy. It achieves this by influencing interest rates, managing the money supply, and supervising and regulating financial institutions. Through its monetary policy decisions, the Fed aims to control inflation, maximize employment, and ensure the stability of the financial system.
The Federal Reserve also serves as a banker to the US government and commercial banks. It processes payments, manages the country's reserve requirement, and provides financial services to depository institutions. In times of economic distress, the Federal Reserve acts as the lender of last resort, injecting liquidity into the financial system to maintain stability.
The Federal Reserve operates through a decentralized structure, with the Board of Governors at its core. The Board consists of seven members, including the Chair and Vice Chair, nominated by the President and confirmed by the Senate. The Federal Reserve System also comprises 12 regional Banks located across the country, known as Federal Reserve District Banks.
Overall, the US Federal Reserve Bank plays a vital role in monitoring and steering the nation's monetary policy, ensuring the stability and functioning of the financial system, and supporting the economic well-being of the United States.
