Federal Reserve System

The Federal Reserve System, commonly known as the Fed, is the central banking system of the United States. It was established in 1913 with the enactment of the Federal Reserve Act and is responsible for implementing monetary policy to promote a strong economy and stable prices. The Fed’s duties include regulating banks; providing payment services; ensuring liquidity in financial markets; managing currency supply; supervising national banks and thrift institutions; making loans to depository institutions such as commercial banks or credit unions, acting as lender of last resort when other lenders are unable or unwilling to lend money during economic downturns; preventing bank runs by maintaining reserves against deposits held at member banks (reserve requirements); protecting consumers through regulation of lending practices such as Truth-in Lending laws that require disclosure about interest rates on consumer loan contracts and Real Estate Settlement Procedures Act which regulates closing procedures for real estate transactions among others.

The Board of Governors located in Washington D.C., serves as its governing body while there are 12 district reserve branches scattered throughout each region across America who provide vital support functions like check processing operations, payments clearing/settlement services etc.. Its main organ is divided into two parts: The Board Of Governors headed by seven members appointed by President followed by confirmation from US Senate,and a Federal Open Market Committee consisting twelve members including all governors along with selected presidents from regional reserve Banks who meet 8 times every year setting up targets for federal fund rate i.e short term borrowing rate used between various departments . Working together they control different aspects relevant to money supply & economics stability within nation much like Central Bank does globally .

In addition , it also provides research & data analysis related reports concerning Banking & Economy regularly which policymakers use extensively helping government help stay ahead with current trends enabling them take decisions accordingly benefiting country’s development economically longterm basis . Further it assists small businesses access capital directly thus creating more employment opportunities eventually bringing growth towards nation overall prosperity since 1913 till date without fail ..