Federal Reserve Bank

Definition

The Federal Reserve Bank, often referred to as the Fed, is the central banking system of the United States. It is responsible for conducting monetary policy, supervising and regulating banks, and maintaining financial stability in the country.

Related terms

Central Bank: A central bank is an institution that manages a country's money supply, controls interest rates, and acts as a lender of last resort during financial crises.

Monetary Policy Tools: These are various instruments used by central banks to influence economic conditions. Examples include open market operations, reserve requirements, and discount rate adjustments.

Financial Stability: Financial stability refers to a state where an economy's financial system functions smoothly without disruptions or excessive risks. The Federal Reserve plays a crucial role in maintaining this stability through its regulatory efforts.