Federal Reserve System - independent agency in the federal executive branch. Established under the Federal Reserve Act of 1913, the Federal Reserve System ("Fed") is the central bank of the United States. One of the most powerful agencies in the government, it makes and administers policy for national credit and monetary policies. The Fed supervises and regulates bank functions across the country, thus maintaining a sound and stable banking industry, able to deal with a wide range of domestic and international financial demands.

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