To what does 'the Fed' commonly refer in U.S. economic policy?

In U.S. economic policy, “the Fed” commonly refers to the Federal Reserve, the nation’s central bank.

The Federal Reserve System was created by Congress through the Federal Reserve Act, signed by President Woodrow Wilson on December 23, 1913. It is a system rather than a single office: its main components are the Board of Governors in Washington, D.C., 12 regional Federal Reserve Banks, and the Federal Open Market Committee, or FOMC.

The Fed conducts monetary policy by influencing interest rates and financial conditions. Congress has given it a dual mandate of maximum employment and stable prices. The FOMC is the body that sets the stance of U.S. monetary policy, including decisions affecting the federal funds rate.

A frequent confusion is treating the Fed as the Treasury Department or as a commercial bank. The Treasury handles federal finances and government debt operations, while the Federal Reserve manages monetary policy and supervises parts of the banking system. The Fed is an independent agency within the federal government framework and is accountable to Congress.