Federal Reserve
The central banking system of the United States.
What is Federal Reserve?
The Federal Reserve (the "Fed") is the central bank of the United States, established in 1913 by the Federal Reserve Act. It consists of the Board of Governors in Washington, D.C., twelve regional Federal Reserve Banks, and the Federal Open Market Committee (FOMC), which sets monetary policy. The Fed's dual mandate from Congress is to promote maximum employment and stable prices (targeting approximately 2% inflation). Its primary tools include the federal funds rate, open market operations, and the discount rate. The FOMC meets eight times per year to review economic conditions and adjust policy.
Example
The FOMC's December 2024 meeting reduced the federal funds rate target range to 4.25–4.50%, citing progress on inflation while monitoring the labor market — a decision closely watched by global financial markets.
Source: Federal Reserve — About the Fed