The purpose of the Federal Reserve System (The Fed) is to ensure stability in the banking system and to keep short-run political pressures out of monetary policy. The Federal Reserve System was created by the U.S. Congress and signed into law by President Woodrow Wilson on December 23, 1913, following a series of bank panics years earlier. In subsequent statutes, Congress refined The Fed's purpose to include enabling economic growth consistent with the U.S. economy's potential, a high level of national employment, stability in the purchasing power of the U.S. dollar, and moderate long-term interest rates.

The Federal Reserve System is composed of a seven-member board of governors and 12 regional Federal Reserve Banks with their 25 branches, which share the responsibilities mandated of the system. ...