The Federal Reserve is the central bank of the United States. It was created by the US Congress in 1913 with the Federal Reserve Act. Alan Greenspan was previously Chairman of the Board of Governors of the Federal Reserve, and in October 2005 President Bush nominated Ben Bernanke to be his successor.
The Federal Reserve serves to study and implement monetary policy. The Fed is made up of a central government agency in Washington D.C. – known as the Board of Governors – and twelve regional offices in major cities throughout the country.
The principle duties of the Federal Reserve are:
*Oversee and regulate the banking system – protecting the credit rights of the public.
*Carry out monetary policy
*Maintain the stability of the financial system.