What is the Fed?

What is the Fed?

So what is the Fed?

What is the Fed?

What is the Fed?

The Federal Reserve often referred to as

"the Fed" is the central bank of the United States.

Congress created the Fed in 1913 to help promote a safe

and sound monetary and financial system for our nation.

The Fed includes the Board of Governors in Washington D.C.

which has seven members including the Chairman

and Vice Chairman.

All of the members of the Board are appointed of the President

of the United States and confirmed

by the United States Senate.

The Fed also includes 12 regional Federal Reserve Banks

located in cities throughout the country.

The Reserve Banks serve as the central banks' operating arms

and also gather economic information from all

over the country to help the Fed both monitor the economy

and get the broad input necessary to develop

and implement effective U.S. monetary policy.

Today, the Fed performs a number of important functions all

with the ultimate goal

of promoting a healthy U.S. economy.

One of the Fed's more recognizable functions is

conducting U.S. monetary policy.

Which involves influencing interest rates

and the availability of money and credit in our economy.

Congress has tasked the Fed with implementing monetary policies

that promote maximum employment and stable prices.

High levels of employment provide people

with more economic opportunities

and stable prices promote growth, by making it easier

for households and businesses to plan for the future.

Monetary policy decisions at the Fed are made

by the Federal Open Market Committee,

which includes all seven members of the Board of Governors

and presidents from the reserve banks.

This committee meets regularly to assess the conditions

and outlook for the economy.

In addition to conducting monetary policy,

the Federal Reserve also helps to supervise

and regulate the nation's banks and works

to promote a stable financial system for consumers,

communities, and businesses.

The Fed also works with communities,

non-profit organizations, and others across the nation

to address housing problems, promote equal access to credit,

and advance economic and community development.

The Fed also promotes stability in the financial system

because instability

in the financial system can pose a severe threat

to the broader economy and communities across the nation.

The Fed also acts as a bank to other banks by clearing checks,

making electronic payments, and providing the currency

that American's need and use every day.

Our nation's economy

and financial system face constant challenges.

The Fed is working every day to address those challenges

and is committed to helping foster good economic conditions

and outcomes, employment opportunities, stable prices,

and financial stability that benefit all Americans.

And we are also the Fed.

To learn more about the Federal Reserve,

you'll find a wide range of resources on the Board

of Governors website at