The Federal Reserve is the central bank of the United States. Through its Board of Governors and the Federal Open Market Committee, it conducts monetary policy to pursue maximum employment and stable prices, and it supervises and regulates banks and helps keep the financial system stable. Its decisions affect interest rates, the money supply, and the safety of the banking system nationwide.
Created by Congress under the Federal Reserve Act (12 U.S.C. ch. 3 (Board membership of seven at 12 U.S.C. § 241; 14-year staggered terms and 'for cause' removal at 12 U.S.C. § 242); Pub. L. 63-43, 38 Stat. 251), it acts within the authority that statute grants. Its actions are subject to judicial review and to congressional oversight and funding.
