To put it simply, it is an institution created in the United States, known as the Federal Reserve System, to maintain reasonable regional inflation, stabilize financial markets, and play an increasingly important role in economic stability and social development.
The Federal Reserve system is different from the traditional central bank, with the distinctive characteristics of American style checks and balances.
The Fed has the following five main functions: 1. To develop and implement policies to promote maximum employment in the United States, stable commodity prices, and moderate long-term growth.
2. Promote the stability of the financial system, with constant supervision and engagement to reduce its systemic risks.
3. Maintain the security of all financial institutions and monitor their individual impact on the financial system against fluctuations in the functioning of the economy.
4. Improve the efficiency and security of the payment system by providing reliable financial services to all banks, U.S. government agencies, and foreign institutions.
5. Supervise banking institutions and protect the legal credit rights of consumers.
