Federal Reserve System (U.S.) — The central banking system of the United States, established by the Federal Reserve Act of 1913 to promote a stable and flexible financial system. It consists of three key components:
Board of Governors — A federal agency in Washington, D.C., comprising seven members appointed by the President and confirmed by the Senate. The Board oversees the 12 Reserve Banks, guides policy, supervises financial institutions, and reports to Congress.
12 Federal Reserve Banks — Regional banks operating across distinct U.S. districts that implement Federal Reserve policies, supervise and lend to depository institutions, distribute currency, facilitate payments, and provide economic data to inform national policy.
Federal Open Market Committee (FOMC) — A 12-member body that sets U.S. monetary policy. It includes the seven Board members, the president of the New York Fed, and four rotating Reserve Bank presidents. The FOMC meets regularly to influence interest rates and credit conditions in pursuit of maximum employment and price stability.
Together, these entities conduct monetary policy, ensure financial stability, supervise and regulate banks, manage the nation’s payments system, and promote consumer protection and community development.
