The Federal Reserve is the central bank of the United States. Central banks are often called the "bankers bank" and the "government's bank." Basically, this means 'the Fed' a) works to insure the safety and efficiency of the commercial banking and payment system in the U.S., and b) oversees the monetary policy of the U.S., mainly through managing interest rates, setting reserve requirements, acting as a lender of last resort and controlling the money supply.
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