The Federal Reserve System, often referred to as the Fed, is the central bank of the United States. It was created by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system.

The Fed is headquartered in Washington, D.C., and has 12 regional Federal Reserve Banks located throughout the country. The Fed Board of Governors, which consists of seven members appointed by the President and confirmed by the Senate, oversees the System.

The Fed has a number of important responsibilities, including:

• Setting monetary policy: The Fed sets interest rates and uses other tools to manage the money supply and credit conditions. This helps to promote economic growth and price stability.
• Supervising and regulating banks: The Fed supervises and regulates banks to ensure that they are sound and safe. This helps to protect the financial system and consumers.
• Maintaining financial stability: The Fed works to maintain financial stability by identifying and mitigating risks to the financial system.
• Providing banking services to the government: The Fed provides banking services to the U.S. government, including processing checks and issuing currency.

The Fed is an independent agency, but it is accountable to Congress. The Fed Chairman testifies before Congress on a regular basis, and the Fed's annual budget is approved by Congress.

The Fed plays an important role in the U.S. economy. By setting monetary policy, supervising and regulating banks, and maintaining financial stability, the Fed helps to promote economic growth, price stability, and financial stability.