The Fed Explained
The 11th edition of The Fed Explained: What the Central Bank Does (formerly The Federal Reserve System Purposes & Functions) details the structure, responsibilities, and work of the U.S. central banking system. The Federal Reserve System performs five functions to promote the effective operation of the U.S. economy and, more generally, to serve the public interest. It includes three key entities: the Board of Governors, 12 Federal Reserve Banks, and the Federal Open Market Committee.
The Federal Reserve 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.
The Federal Reserve sets U.S. monetary policy to promote maximum employment and stable prices in the U.S. economy.
VIDEO: Fed Functions: Conducting Monetary Policy
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.
VIDEO: Fed Functions: Promoting Financial System Stability
The Federal Reserve promotes the safety and soundness of individual financial institutions and monitors their impact on the financial system as a whole.
VIDEO: Fed Functions: Supervising and Regulating Financial Institutions
The Federal Reserve works to promote a safe, efficient, and accessible system for U.S. dollar transactions.
VIDEO: Fed Functions: Fostering Payment and Settlement System Safety and Efficiency
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.
VIDEO: Fed Functions: Consumer Protection and Community Development
A publication of the Board of Governors of the Federal Reserve System
This book is available in Adobe Acrobat format, as a complete publication or by chapter.
Complete publication (PDF)