Federal Reserve

Federal Reserve System
	Seal of the Federal Reserve System
	Flag of the Federal Reserve System
	The Eccles Building in Washington, D.C., which serves as the Federal Reserve System's headquarters
Central bank of	United States
Headquarters	Eccles Building, Washington, D.C., U.S.
Established	December 23, 1913
Governing body	Board of Governors
Key people	Kevin Warsh; (Chair); Philip Jefferson; (Vice Chair); Michelle Bowman; (Vice Chair for Supervision);
Currency	United States dollar; USD (ISO 4217)
Reserve requirements	None
Bank rate	3.75%
Interest rate target	3.50–3.75%
Interest on reserves	3.65%
Interest paid on excess reserves?	Yes
Website	www.federalreserve.gov
	Federal Reserve
Agency overview
Jurisdiction	Federal government of the United States
Child agency	Federal Open Market Committee;
Key document	Federal Reserve Act;

The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the American monetary system. Although an instrument of the U.S. government, the Federal Reserve System is considered an independent central bank due to its structural insulation from political interference. Over the years, events such as the Great Depression in the 1930s and the Great Recession during the 2000s have led to the expansion of central bank's remit.

Congress established three key objectives for monetary policy in the Federal Reserve Act: maximizing employment, stabilizing prices, and moderating long-term interest rates. The first two objectives are sometimes referred to as the Federal Reserve's dual mandate. Its duties have expanded over the years, and include supervising and regulating banks, maintaining the stability of the financial system, and providing financial services to depository institutions, the U.S. government, and foreign official institutions. The Fed also conducts research into the economy and provides numerous publications, such as the Beige Book and the FRED database.

The Federal Reserve System is composed of several layers. It is governed by the presidentially appointed board of governors or Federal Reserve Board (FRB). Twelve regional Federal Reserve Banks, located in cities throughout the nation, regulate and oversee privately owned commercial banks. The Federal Open Market Committee (FOMC) sets monetary policy by adjusting the target for the federal funds rate, which generally influences market interest rates and, in turn, the American economy via the monetary transmission mechanism.

The Federal Reserve has been criticized for its approach to managing inflation, perceived lack of transparency, and its role in economic downturns. Advocates of Austrian economics believe that the shift from the gold standard to fiat currency has led to long-term inflation and financial instability, with some calling for the Fed's abolition or greater accountability through audits.