The Federal Reserve System, often referred to as the Fed, is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act. Its primary mission is to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Fed's main duties include conducting the nation's monetary policy to promote maximum employment and stable prices (its dual mandate), supervising and regulating banking institutions, maintaining the stability of the financial system, and providing financial services to depository institutions, the U.S. government, and foreign official institutions. The system is composed of a central, independent government agency—the Board of Governors—in Washington, D.C., and 12 regional Federal Reserve Banks located in major cities throughout the country.

Founded in

United States