About the Fed

The Federal Reserve is the U.S. central bank, created by the Federal Reserve Act of 1913 to establish a monetary system that could respond effectively to stresses in the banking system. The Federal Reserve System includes

• The Board of Governors, a federal agency located in Washington, D.C., and

• 12 Federal Reserve Banks around the nation.

The Federal Reserve System is all the people who work at

• the Federal Reserve Board of Governors, a federal agency in 
• Washington, D.C.

• the 12 Federal Reserve Banks, operating around our nation to help ensure all household, community, and business economic conditions and perspectives inform Fed policies, actions, and decision-making; and

• the 12 voting members from around the System who serve on the Federal Open Market Committee and help set crucial U.S. monetary policy.

To learn more: The Federal Reserve Explained: About the Fed

The Federal Reserve System performs five key functions that serve all Americans and promote the health and stability of the U.S. economy and financial system. It conducts the nation’s monetary policy, promotes financial system stability, supervises and regulates financial institutions, fosters payment and settlement system safety and efficiency, and promotes consumer protection and community development. Below is a brief summary of the five functions.

Monetary Policy

The fed sets U.S. monetary policy to promote maximum employment and stable prices in the U.S. economy.

To learn more: The Federal Reserve Explained: Monetary Policy

Financial Stability

The Fed monitors financial system risks to help ensure the system supports a healthy economy for U.S. households, communities, and businesses.

To learn more: The Federal Reserve Explained: Financial Stability

Supervision & Regulation

The Fed promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole.

To learn more: The Federal Reserve Explained: Supervision & Regulation

Payment Systems

The Fed works to promote a safe, efficient, and accessible system for U.S. dollar transactions.

To learn more: The Federal Reserve Explained: Payment Systems

Consumers & Communities

The Fed advances supervision and research to improve understanding of the impacts of financial services policies on consumers and communities.

To learn more: The Federal Reserve Explained: Consumers & Communities