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The Federal Reserve (FED) is the central bank of the United States. It was created in 1913 by the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a panic in 1907. Over time, its role in banking and the economy has expanded.

The Federal Reserve System is composed of twelve regional Federal Reserve banks and branches that are organized into three levels:

The Board of Governors is located in Washington D.C., and serves as the governing body for the system. The Board sets monetary policy, regulates member banks, maintains stability of financial markets, provides financial services to depository institutions, and monitors economic activity in U.S.

The Federal Open Market Committee (FOMC) meets eight times per year to set monetary policy for the United States