Federal Reserve

The Federal Reserve, or the Fed, is the central bank of the United States. Congress created it in 1913. Its monetary policy goals, set in law, are maximum employment and stable prices.

Its main decision is the target range for the federal funds rate, the interest rate banks charge each other for overnight loans. The Federal Open Market Committee, the Fed's policy group, holds eight regularly scheduled meetings a year and announces that range rather than one fixed number: in early September 2026 it was 3.50 to 3.75 percent. When the range moves, rates on savings accounts, credit cards and new bonds tend to follow, though not by the same amount.

The Fed also supervises many banks. It does not hold accounts for individuals, does not insure deposits (a separate federal agency does) and cannot protect you from investment losses.