The Fed / The Federal Reserve System

The Federal Reserve SysteThe Fed is the US central-banking system which is made up of 12 regional central banks (called the Federal Reserve Banks) which are privately owned banks. The Fed is governed by a seven-member board of governors who are appointed by the president. The Fed is responsible for regulating interest rates and availability of bank credit. It also sets the US banking system’s monetary policies such as legal reserve requirements.

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