What is the name of the central banking system of the United States?

The Federal Reserve is the central banking system of the United States. It is commonly called the Federal Reserve System or simply the Fed, and it manages monetary policy while helping oversee the country’s banking and financial system.

Congress created the Federal Reserve through the Federal Reserve Act, signed by President Woodrow Wilson on December 23, 1913. The system emerged after repeated financial panics, particularly the Panic of 1907, exposed weaknesses in the nation’s fragmented banking structure.

The Fed is organized around a Board of Governors in Washington, D.C., 12 regional Federal Reserve Banks and the Federal Open Market Committee. The FOMC sets the target range for the federal funds rate, an interest rate that influences borrowing costs throughout the economy. The Fed also supervises banks, supports payment systems and can act as a lender of last resort.

It is not the same as the U.S. Treasury, which is part of the federal government and handles fiscal operations. The Fed’s widely discussed dual mandate is maximum employment and stable prices; federal law also mentions moderate long-term interest rates.