The Federal Reserve Bank is the central banking system of the United States, created in 1913 with the passage of the Federal Reserve Act. It is led by a Board of Governors made up of seven members appointed by the President and confirmed by the Senate. The Board is responsible for setting monetary policy, supervising and regulating banks, and overseeing the financial system. The Federal Reserve uses tools such as interest rates and quantitative easing to manage the money supply and influence economic conditions. These policy decisions are made through the Federal Open Market Committee, which brings together members from the system.
The Federal Reserve’s mandate focuses on promoting economic growth, stability, and low unemployment. By adjusting interest rates and managing money supply, its actions influence borrowing costs, credit availability, and overall financial conditions. These functions are central to maintaining a stable banking system and supporting broader economic performance across the United States.