The Federal Reserve System is the central bank of the United States. Its decentralized structure comprises three primary elements:

a. Twelve Federal Reserve Banks, each with its own board of directors, that i. Serve as the government’s bank, issuing currency, maintaining the U.S.

Treasury’s bank account, and handling the Treasury’s securities.

ii. Serve as the bankers’ bank, holding deposits, operating a payments system, making loans, and evaluating the safety and soundness of financial institutions in their districts.

b. The seven-member Board of Governors in Washington, D.C., including the chair:
i. Regulates and supervises the financial system.
ii. Oversees the Federal Reserve Banks.
iii. Publishes economic data.

c. The Federal Open Market Committee:
i. Makes monetary policy by setting interest rates or altering the balance sheet.
ii. Has 12 voting members, including the seven governors and five of the 12 Reserve Bank presidents.
iii. Meets eight times a year.
iv. Is controlled largely by the chair.