Federal Reserve System is an independent agency of the United States government that helps oversee the nation's banking system. The Federal Reserve System is known as the central bank of the United States. Its most important job is to assist the U.S. government in managing the economy by encouraging economic growth and controlling inflation. It pursues these goals by influencing interest rates and, the availability of money and loans. The program the Fed follows in influencing interest rates is called its monetary policy. The Fed also performs many financial services for the federal government and provides numerous services to commercial banks.
History: Congress established the Fed in 1913 to provide a flexible currency for the nation and to strengthen the supervision of the banking system. By the mid-1930's, Congress gave the Fed authority to set reserve and margin requirements.
Organization.
The Fed has 12 Federal Reserve Banks and 25 Federal Reserve Bank branches.…
