What is the role of the Federal Reserve System (Fed) in the United States economy?

What is the role of the Federal Reserve System (Fed) in the United States economy?

The Federal Reserve System (Fed) plays a crucial role in the United States economy. Its primary role is to serve as the central bank of the country, responsible for conducting monetary policy and maintaining price stability. The Fed controls the money supply, regulates interest rates, and manages the banking system to promote economic growth and stability. It also acts as a lender of last resort, providing liquidity to banks during times of financial stress. Additionally, the Fed supervises and regulates banks to ensure the safety and soundness of the financial system. Overall, the Fed's actions and policies have a significant impact on the economy, influencing inflation, employment, and overall economic stability.