Who We Are

The Federal Reserve is the U.S. central bank, created by the Federal Reserve Act of 1913 to establish a monetary system that could respond effectively to stresses in the banking system. The Federal Reserve System includes

The Board of Governors, a federal agency located in Washington, D.C., and
12 Federal Reserve Banks around the nation.

The Federal Reserve System performs five key functions that serve all Americans and promote the health and stability of the U.S. economy and financial system. It conducts the nation’s monetary policy, promotes financial system stability, supervises and regulates financial institutions, fosters payment and settlement system safety and efficiency, and promotes consumer protection and community development.

The Three Key Entities

The Federal Reserve System is all the people who work at

the Federal Reserve Board of Governors, a federal agency in Washington, D.C.;
the 12 Federal Reserve Banks, operating around our nation to help ensure all household, community, and business economic conditions and perspectives inform Fed policies, actions, and decisionmaking; and
the 12 voting members from around the System who serve on the Federal Open Market Committee and help set crucial U.S. monetary policy.

An Accountable, Transparent, Nonpartisan Federal Agency in the Nation's Capital

The Board of Governors—located in Washington, D.C.—is the governing body of the Federal Reserve System.

The Board

is run by 7 members, or "governors" serving staggered 14-year terms, who are nominated by the President of the United States and confirmed in their positions by the U.S. Senate;
includes a Chair and Vice Chair, who may be appointed for one or more additional four-year terms;
guides the operation of the Federal Reserve System to promote the goals and fulfill the responsibilities given to the Federal Reserve by the Federal Reserve Act;
oversees the operations of the 12 Reserve Banks and shares with them the responsibility for supervising and regulating certain financial institutions and activities; and
is an agency of the federal government that reports to and is directly accountable to Congress.

US map depicting the 12 Federal Reserve districts.

Twelve Operating Arms around Our Nation

The 12 Reserve Banks—and their 24 Branches—are the operating arms of the Federal Reserve System. Each Reserve Bank operates within its own particular geographic area, or district, of the United States.

Although supervised by the Federal Reserve Board, the Reserve Banks operate independently in many respects. The Reserve Banks carry out a number of core Fed functions, such as

supervising and examining banks and other financial institutions;
enforcing compliance with federal consumer protection and fair lending laws while promoting local community development; and
lending to depository institutions to ensure liquidity in the financial system.

They also play a key role in another primary Fed function—fostering the safety and efficiency of our nation's payment systems, including

distributing currency and coins to banks, operating electronic payment systems, and clearing our checks; and
acting as the "government's bank" by providing services such as maintaining the Treasury Department's transaction account and issuing and redeeming U.S. government securities.

The Reserve Banks also provide a wealth of information on conditions across the nation—information that is vital to formulating a national monetary policy that helps maintain a healthy U.S. economy and stable financial system.

A Federal Committee Setting the Nation's Monetary Policy

The Federal Open Market Committee, or FOMC, is a 12-person group of Federal Reserve System officials that sets crucial U.S. monetary policy at meetings held at least 8 times each year.

The FOMC's monetary policy actions influence interest rates and credit conditions, which can significantly impact financial conditions, including economic productivity and even spending and investment decisions by households, communities, and businesses.

The FOMC makes all decisions regarding the appropriate position or "stance" of monetary policy to help move the economy toward the congressionally mandated goals of maximum employment and price stability.

The FOMC's 12 voting members include

the 7 members of the Board of Governors;
the president of the Federal Reserve Bank of New York; and
4 of the remaining 11 Reserve Bank presidents, who serve one-year terms on a rotating basis.

In addition, all the remaining 7 Reserve Bank presidents attend FOMC meetings and participate in FOMC deliberations.

The Board of Governors, the Federal Reserve Banks, and the Federal Open Market Committee work together to promote the health of the U.S. economy and the stability of the U.S. financial system.

Tuned in to Economic Conditions through Data Collection and Analysis

Teams of economists, analysts, examiners, and other professionals from across the Federal Reserve System continuously gather and analyze data and information from around the U.S. and abroad.

This information and analysis provides insights on conditions across the nation—including at the regional and local level—that are vital to

formulating effective monetary policy,
assessing the health of the U.S. economy,
promoting the stability of our financial system, and
ensuring that consumer, community, and business voices are heard at the central bank.

The Board of Governors, a federal agency located in Washington, D.C., and
12 Federal Reserve Banks around the nation.