The American central bank is the Federal Reserve System, usually referred to as the Fed.
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In response to the nation's persistent financial panics and bank failures, the Federal Reserve Act, signed into law by President Woodrow Wilson in 1913, established it.
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A complicated, decentralised organisation, the Fed is made up of 12 regional banks spread around the nation, a board of governors in Washington, D.C., and the Federal Open Market Committee (FOMC).
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The president appoints and the Senate confirms seven individuals to serve on the board of governors. The Fed's public face, the chair of the board, is very important in determining monetary policy.
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The FOMC is in charge of deciding on monetary policy, which includes controlling the money supply and establishing interest rates. It is made up of five of the twelve regional bank presidents and the seven members who rotate off the board of governors.
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The Fed's three main responsibilities are to oversee banks and other financial institutions, administer monetary policy, and provide payment services to the government and other financial institutions.
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The Fed is sometimes referred to be a lender of last resort, which means that it can offer urgent loans to banks and other financial institutions in times of emergency to assist stop a more widespread financial collapse.