How does the US Federal Reserve work?
The US Federal Reserve operates and makes decisions independently of the US government and the president. However, its operations are subject to oversight by the US Congress and are expected to be consistent with national economic policy. The main responsibilities of the Federal Reserve are:
Issuing the US dollar, regulating its value, and setting the Federal Reserve interest rate.
Implementing monetary policy to achieve maximum employment, price stability, and interest rates.
Supervising the Federal Reserve Banks and maintaining the stability of the financial system.
Regulating banks, financial institutions, and financial markets to protect consumers.
Providing financial services to depository institutions, the government, and foreign official institutions.
