What is the Federal Reserve: The Federal Reserve (often called simply "The Fed") has broad regulatory powers over the banking system and the financial markets in the U.S. One of its primary roles is to act as lender of last resort to the banking system. It also conducts monetary policy: through its ability to set key interest rates and to adjust the overall supply of money and credit, the Federal Reserve can influence economic growth and inflation.
Organization: The Federal Reserve System is a network of 12 regional Federal Reserve Banks, located in major cities and each serving a specified region of the country. The Federal Reserve Districts are:
- Boston
- New York
- Philadelphia
- Cleveland
- Richmond
- Atlanta
- Chicago
- St. Louis
- Minneapolis
- Kansas City
- Dallas
- San Francisco
Additionally, each District typically has branches within other major cities.
The Federal Reserve Board of Governors (often called "The Federal Reserve Board") is headquartered in Washington, DC and is the main policy-making body within the Federal Reserve System.
