The purpose of the Federal Reserve System is to promote the effective operation of the U.S. economy and, more generally, to serve the public interest ¹. It does this by performing five key functions: conducting monetary policy, promoting financial system stability, supervising and regulating financial institutions and activities, fostering payment and settlement system safety and efficiency, and promoting consumer protection and community development ¹. For example, the Federal Reserve sets U.S. monetary policy to promote maximum employment and stable prices in the U.S. economy ¹.
