Federal Reserve SystemThe Federal Reserve System (aka The Federal Reserve or The Fed) is the central banking system of the United States.
The Fed has 3 major parts: (1) the Board of Governors, which oversees Fed operations; (2) The Federal Open Market Committee, which sets the national monetary policy and interest rate; and (3) the 12 regional Federal Reserve Banks, which act as fiscal agents for the U.S. Treasury in that region.