Federal ReserveBrowse all terms in Glossary The Federal Reserve
System or "the Fed," was created by the Congress to provide the
nation with a safe, flexible, and stable monetary and financial
system. The Federal Reserve is the central bank of the United
States. Responsibilities fall into four general areas: 1.
Conducting the nation's monetary policy - by influencing money
and credit conditions in the economy in pursuit of full
employment and stable prices. 2. Supervising and regulating
banks - ensure the safety and soundness of the nation's banking
and financial system and to protect the credit rights of
consumers. 3. Maintaining the stability of the financial system
4. Providing certain financial services to the U.S. government,
U.S. financial institutions, and foreign official institutions,
and playing a major role in operating and overseeing the
nation's payments systems.