| a U.S. federal banking system that is under the control of a central board of governors (Federal Reserve Board) with a central bank (Federal Reserve Bank) in each of 12 districts and that has wide powers in controlling credit and the flow of money as well as in performing other functions, as regulating and supervising its member banks. |
| Federal Reserve System n. A U.S. banking system that consists of 12 federal reserve banks, with each one serving member banks in its own district. This system, supervised by the Federal Reserve Board, has broad regulatory powers over the money supply and the credit structure. |
The central monetary authority of the United States. The Board of Governors supervises the twelve Federal Reserve banks, which deal with other banks rather than with the public. The system has many functions, including regulating interest rates.
Federal Reserve System
The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States.
Investopedia Commentary
You can divide the Federal Reserve's duties into four general areas:
1. Conducting monetary policy
2. Regulating banking institutions and protecting the credit rights of consumers
3. Maintaining the stability of the financial system
4. Providing financial services to the U.S. government
Related Links
The Federal Reserve (the Fed) Tutorial
Formulating Monetary Policy
See also: Alan Greenspan, Discount Rate, Discount Window, Fed Model, Federal Funds Rate, Federal Reserve Bank, Federal Reserve Board (FRB), Federal Reserve Open Market Committee (FOMC), Interest Rate, Monetary Policy, Moral Suasion, Open Market Operations, Prime Rate, Reserve Requirements
Federal Reserve System