Definition

Noun: - The central banking system of the United States: The Federal Reserve System is the institution responsible for managing the nation's monetary policy, regulating banks, maintaining financial stability, and providing financial services to depository institutions and the federal government. It is composed of a central Board of Governors in Washington, D.C., and 12 regional Federal Reserve Banks.

Usage Examples

• Noun:
  • The Federal Reserve System was established in 1913 to provide the country with a safer, more flexible, and more stable monetary and financial system.
  • Decisions made by the Federal Reserve System can influence interest rates and economic growth.
  • Banks in the United States are subject to regulation by the Federal Reserve System.

Advanced Usage

• "The Fed": A common informal name for the Federal Reserve System.
  • Investors are waiting to see if the Fed will change interest rates at its next meeting.

Variants and Related Words

• Federal Reserve (n): Often used interchangeably with "Federal Reserve System" to refer to the central bank.
  • The Federal Reserve released its policy statement today.
• The Fed (n): The widely used shorthand term.
• Federal Reserve Bank (n): One of the 12 regional banks that, along with the Board of Governors, constitute the Federal Reserve System.
  • The Federal Reserve Bank of New York plays a key role in financial markets.

Synonyms

• Central bank (of the United States): The primary institution controlling a country's monetary policy.
• Monetary authority: An entity that controls the money supply and credit conditions.

Related Phrases

• Federal Open Market Committee (FOMC): The branch of the Federal Reserve System that sets key interest rates and directs open market operations.
  • The FOMC holds eight regularly scheduled meetings per year.
• Monetary policy: The process by which the Federal Reserve System manages the money supply and interest rates to achieve macroeconomic objectives.
  • The primary tool of U.S. monetary policy is the target for the federal funds rate.

Noun

1. the central bank of the United States; incorporates 12 Federal Reserve branch banks and all national banks and state-chartered commercial banks and some trust companies
   • the Fed seeks to control the United States economy by raising and lowering short-term interest rates and the money supply