The Federal Reserve System, commonly referred to as the Fed, is the central banking system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act. The primary role of the Fed is to oversee the nation's banking sector and to fulfill its dual mandate of promoting maximum employment and price stability. The Fed implements monetary policy through its control over the money supply, and it is responsible for supervising and regulating state banks and the US banking system to maintain the solvency of financial institutions and the stability of the economy. Its decisions around setting reserve requirements, conducting open market operations, and purchasing government debt all play a part in how well the economy functions.

See also: central bank, financial system, economic system, economic growth, wealth inequality