Federal Reserve System (Fed)

The Federal Reserve System, often called the Fed, is the central banking authority of the United States. It manages the country’s money supply, sets interest rates, and regulates banks to ensure a stable economy. By adjusting how much money is available and influencing borrowing costs, the Fed helps control inflation, promote employment, and maintain financial stability. It also provides financial services to the government and banks, acting as a lender of last resort during times of economic stress. Overall, the Fed plays a critical role in supporting a healthy and functioning U.S. economy.