Who We Are

We Do More Than Count Money

Established in 1913 by an Act of Congress, the Federal Reserve plays a critical role in today's economy. But despite its history, many people do not have a clear understanding of the Fed's structure and functions.

One of the typical assumptions is that the Fed is a government agency, which it is not. It was established as an independent arm of the federal government to insulate it from political whims. The Fed's original goal was to stabilize the turbulent banking system of the time. Today, it is responsible for fostering a sound banking system and a healthy economy.

The Federal Reserve System is made up of 12 regional Reserve banks, which are located throughout the United States and overseen by a seven-member Board of Governors, based in Washington, D.C. This structure gives the Fed both a national and regional perspective as it serves public and private interests.

The Federal Open Market Committee (FOMC), our monetary policy-making body, is made up of board members and Bank presidents. The FOMC is responsible for maintaining price stability and expanding national economic growth and is guided, in part, by economic research conducted by economists and analysts at the Reserve banks.

In addition to our vital monetary policy-making functions, the Fed also supervises bank holding companies and state-chartered member banks to ensure that financial institutions adhere to its regulations.

The Fed's third major area of responsibility is to serve as "the banker's bank" by providing financial institutions a safe and efficient method of transferring funds through the banking system. We provide cash, check and electronic payment services at prices low enough to be affordable for financial institutions of all sizes, yet high enough that we can recover our costs.

The Federal Reserve Bank has an important job to do, and we pride ourselves on hiring employees who are motivated and committed to helping us achieve our goals in various functions.

To learn more about the Fed, read In Plain English, an easy-to-read guide to the structure and functions of the Federal Reserve System.