What Is the 'Federal Reserve System (FRS)'?

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), often just called "the Fed," 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 Fed is composed of 12 regional Federal Reserve Banks that are each responsible for a specific geographic area of the U.S. Read More » Related to "Federal Reserve System" How the Federal Reserve Was Formed Find out how this institution has stabilized the U.S. economy during economic downturns. Read More » How the Federal Reserve Fights Recessions Here's a look at how the Fed can fight recessions, as the U.S. faces a steep economic downturn sparked by the COVID-19 pandemic. 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 » The Federal Reserve Chairman's Responsibilities The chairman of the Federal Reserve Board has many duties including testifying before Congress and as acting as chair of the FOMC. Read 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 U.S. monetary policy. Read More » Open Market Operations The Federal Reserve uses open market operations (OMO) to achieve the target federal funds rate it has set by buying or selling Treasury securities. Read More » Federal Open Market Committee The Federal Open Market Committee (FOMC) is the branch of the Federal Reserve System that determines the direction of monetary policy. Read More » Federal Funds Rate Federal funds rate is the target interest rate set by the Fed at which commercial banks borrow and lend their excess reserves to each other 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