What Is the 'Federal Reserve System'?

The Federal Reserve System is the central bank of the United States and provides the nation with a safe, flexible, and stable monetary and financial system. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Term of the Day | Words to Know Federal Reserve System The Federal Reserve System (FRS) is the central bank of the United States and arguably the most powerful financial institution in the world. It was founded to provide the country with a safe, flexible, and stable monetary and financial system. The FRS is comprised of 12 regional Federal Reserve Banks that are each responsible for a specific geographic area of the U.S. The system is often known simply as "the Fed." Read More » Related to "Federal Reserve System" The Federal Reserve Chairman's Responsibilities The chairman of the Federal Reserve Board has many duties including testifying before Congress and as acting chair of the FOMC. Read More » The Major Central Banks Familiarizing yourself with what makes central banks tick will give you a leg up when predicting their next moves, and the future of a given currency. Read More » How the Federal Reserve Devises Monetary Policy Learn about the tools the Federal Reserve uses to influence interest rates and economic conditions. Find out the types of action a central bank may take. Read More » SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More » Related Definitions 1913 Federal Reserve Act The 1913 Federal Reserve Act created the current Federal Reserve System and introduced a central bank to oversee monetary policy. Read More » Open Market Operations The Federal Reserve uses open market operations to achieve the target federal funds rate it has set. This involves purchasing or selling Treasury securities. Read More » Federal Open Market Committee The Federal Open Market Committee (FOMC) is the branch of the Federal Reserve Board that determines the direction of monetary policy. Read More » Federal Funds Rate The federal funds rate is the target interest rate set by the Fed at which banks borrow and lend excess reserves overnight. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy