The Federal Reserve, often referred to as the Fed, is the central bank of the United States. Established in 1913, it plays a crucial role in managing the country's monetary policy, regulating banks, and providing financial services. Its primary goals include promoting maximum employment, stable prices, and moderate long-term interest rates. The Fed operates through a system of twelve regional banks and is governed by a Board of Governors. It influences the economy by setting interest rates and controlling the money supply, which can affect inflation and overall economic growth. Its decisions are closely watched by markets and policymakers alike.