The federal banking authority in the US that performs the functions of a central bank and is used to implement the country’s monetary policy, providing a national system of reserve cash available to banks. Created in 1913, the Federal Reserve System consists of twelve Federal Reserve Districts, each having a Federal Reserve Bank. These are controlled from Washington, DC, by the Federal Reserve Board consisting of governors appointed by the US president with Senate approval.
Definition of Federal Reserve in:
- The British & World English dictionary