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Federal Reserve

definition

As the central bank of the U.S. government, the Federal Reserve (or Fed as it is sometimes called) establishes monetary policy. It also regulates and oversees member institutions and international banks. The Federal Reserve is comprised of 12e Federal Reserve Banks. The agency is administered by a seven-member Board of Governors. Board members are appointed by the President of the United States and confirmed by the Senate to serve a 14-year term. The Chairman and Vice Chairman are appointed by the President and confirmed by the Senate to serve four-year terms. On the Web at www.federalreserve.com. See Bernanke, Ben; Greenspan, Alan.