New York Fed is symbol of U.S. capitalism The New York Fed is
the most powerful of 12 regional banks that make up the Federal
Reserve System, which functions as the nation's central bank.
The system regulates the money supply, sets interest rates and
oversees banks. Its influence over rates affects everything from
the cost of mortgages and credit cards to earnings on savings
accounts. The New York Fed implements the Federal Reserve's
interest rate policy and intervenes in foreign exchange markets
to influence the value of the dollar. "We are charged with
managing the nation's monetary policy -- taking actions that
raise or lower interest rates to promote full employment and
price stability," New York Fed president William C. Dudley told
business owners in New Jersey last month. "We [also] play an
important role in the nation's payments and settlements system,
which you might think of as the plumbing of the financial
system." The basement of the New York Fed headquarters contains
the world's largest gold depos