Federal Reserve System
The central bank of the USA is known as the Federal Reserve System. It is often referred to as the Federal Reserve or simply the Fed.

Role of the Federal Reserve System:
- The Federal Reserve System is responsible for conducting monetary policy in the United States. It aims to promote maximum employment, stable prices, and moderate long-term interest rates.
- It supervises and regulates banks to ensure the stability of the financial system.
- The Federal Reserve also plays a key role in providing financial services to depository institutions, the U.S. government, and foreign official institutions.

Structure of the Federal Reserve System:
- The Federal Reserve System consists of the Board of Governors, 12 regional Federal Reserve Banks, and the Federal Open Market Committee (FOMC).
- The Board of Governors is located in Washington, D.C., and is responsible for overseeing the entire system.
- The 12 regional Federal Reserve Banks are located in major cities across the country and carry out various functions such as supervising member banks and providing financial services.
- The Federal Open Market Committee (FOMC) is responsible for setting monetary policy by controlling the federal funds rate and conducting open market operations.

Independence of the Federal Reserve System:
- The Federal Reserve System operates independently from the federal government to maintain its credibility and effectiveness in conducting monetary policy.
- The Fed is accountable to Congress and regularly reports on its activities and decisions.
In conclusion, the Federal Reserve System plays a crucial role in the U.S. economy by conducting monetary policy, supervising banks, and providing financial services. Its independence and structure are designed to ensure the stability and efficiency of the financial system.