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The Federal Reserve System is the central bank of the United States. As the nation's central bank, it performs five key functions in the public interest to promote the health of the U.S. economy and the stability of the U.S. financial system.

Consumers and Communities
The Federal Reserve advances supervision, community reinvestment, and research to improve understanding of the impacts of financial services policies and practices on consumers and communities.

Supervision & Regulation
The Federal Reserve promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole.

Economic Expansions
Economic expansions are characterized by growing employment and economic output

Fed Governance
Though Congress specifies the goals for monetary policy, it established the Federal Reserve as an independent agency to ensure that its decisions are based on facts and objective analysis and serve the best interests of all Americans.

The Fed in Wartime
World War I and World War II strongly shaped Fed policy and actions.

The Fed's Structure
The Federal Reserve Act of 1913 called for a central banking system with a central governing Board and a decentralized operating structure of multiple Reserve Banks. This hybrid structure is still in place today.
![<p>The Panic - Run on the Fourth National Bank, No. 20 Nassau Street [New York City, 1873]. (Image LC-USZ6-952 via<a href="https://www.loc.gov/pictures/resource/cph.3a00900/"> Library of Congress Prints and Photographs Division</a>)<br></p>](/-/media/images/financial-stability_720x450.jpg)
Financial Stability
The Federal Reserve monitors financial system risks and engages at home and abroad to help ensure the system supports a healthy economy for U.S. households, communities, and businesses.

Inflation
One part of the Fed's dual mandate is price stability. Price stability means that inflation remains low and stable over the longer run.

International Events
International events have shaped the American economy and Fed policy.

Payment Systems
The Federal Reserve works to promote a safe, efficient, and accessible system for U.S. dollar transactions.

Recessions and Depressions
Economic downturns in American history have ranged from mild recessions to severe depressions.

Legislation
Various pieces of legislation have shaped the Fed’s structure and policy mandates.

The Road to the Fed
The Federal Reserve System was established in 1913 in reaction to a history of financial instability and other economic challenges.

Monetary Policy
The Federal Reserve sets U.S. monetary policy to promote maximum employment and stable prices in the U.S. economy.