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 primary responsibilities of the Federal Reserve are to:
Issue the US dollar, regulate its value, and set the Federal Reserve interest rate.
Implement monetary policy to achieve maximum employment, price stability, and interest rates.
Supervise the Federal Reserve Banks and maintain the stability of the financial system.
Regulate banks, financial institutions, and financial markets to protect consumers.
Provide financial services to depository institutions, the government, and foreign official institutions.
