• The Federal Reserve System (FRS), also known as the Fed, is the central bank of the United States.
  • Its key functions include, among other things, the management of the country’s monetary policy and the regulation of banks.
  • The Federal Reserve payment system, known as Fedwire, transfers trillions of dollars between banks daily.
  • The Federal Open Market Committee (FOMC) is the body of the Federal Reserve, which determines monetary policy and manages the country’s money supply.
  • The FOMC adjusts the overnight federal funds rate target, which controls short-term interest rates, based on its view of the economy.