Federal Reserve

The Federal Reserve, commonly referred to as the Fed, is the central banking system of the United States. Established in 1913, it serves as the nation’s bank and plays a critical role in the country’s monetary policy. The Federal Reserve’s primary functions include regulating the money supply, ensuring the stability of the financial system, supervising and regulating banks, providing financial services, and conducting monetary policy to achieve macroeconomic goals such as maximum employment, stable prices, and moderate long-term interest rates. The Fed operates through a network of twelve regional Reserve Banks and is governed by the Board of Governors. Its decisions influence interest rates, inflation, and overall economic growth in the U.S. and can have global implications.