The Federal Reserve System, the central bank of the United States, was created in 1913.
The Federal Reserve Act was signed by President Woodrow Wilson on 23 December 1913. The system was designed after repeated financial panics showed that the United States needed a more flexible currency and a lender of last resort.
Unlike many central banks, the Federal Reserve is a decentralized system. It consists of a Board of Governors in Washington, D.C., twelve regional Federal Reserve Banks, and the Federal Open Market Committee, which sets the stance of monetary policy. Its responsibilities include maximum employment, stable prices, and moderate long-term interest rates.
The Federal Reserve is often called “the Fed.” It should not be confused with the U.S. Treasury: the Treasury manages federal government finances, while the Fed conducts monetary policy and supports financial-system stability. The Federal Reserve Note is the formal name for U.S. paper currency issued through the system.