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.
British Dictionary definitions for federal-reserve-system
Federal Reserve System
(in the US) a banking system consisting of twelve Federal Reserve Districts, each containing member banks regulated and served by a Federal Reserve Bank. It operates under the supervision of the Federal Reserve Board and performs functions similar to those of the Bank of England
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.