The Federal Reserve is an independent agency of the U.S. government that plays a central role in monetary policy, domestic payments systems, and the regulation of financial institutions.
The Fed is the central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors), and twelve regional Federal Reserve Banks in major cities throughout the United States. You can divide the Federal Reserve’s duties into four general areas: Conducting monetary policy, Regulating banking institutions and protecting the credit rights of consumers, Maintaining the stability of the financial system, Providing financial services to the U.S. government