The Federal Reserve System

The Federal Reserve System, or Fed, is the United States' central bank responsible for managing the country's monetary policy. It influences the economy by setting interest rates, regulating banks, and controlling the money supply to promote stable prices, maximum employment, and economic growth. The Fed also supervises and inspects banks to ensure safety and soundness, and provides financial services to the government and other banks. Its decisions impact borrowing costs, inflation, and overall economic stability, making it a key institution in maintaining the health of the U.S. economy.