What is the Federal Reserve Bank?

The Federal Reserve Bank, better known as ‘The Fed’, is the central bank of the United States. However, the Fed is actually made up of 12 smaller banks each representing a region of the United States.

The Federal Reserve branches are listed below:

  • Federal Reserve Bank of Boston
  • Federal Reserve Bank of New York
  • Federal Reserve Bank of Philadelphia
  • Federal Reserve Bank of Cleveland
  • Federal Reserve Bank of Richmond
  • Federal Reserve Bank of Atlanta
  • Federal Reserve Bank of Chicago
  • Federal Reserve Bank of St. Louis
  • Federal Reserve Bank of Minneapolis
  • Federal Reserve Bank of Kansas City
  • Federal Reserve Bank of Dallas
  • Federal Reserve Bank of San Francisco

What does the Federal Reserve Bank do?

The Federal Reserve Bank has a few different responsibilities. Most of which are for the U.S. government itself.

  • Acting as depositories for bank reserves
  • Lending to banks to cover short-term fund deficits, seasonal business cycles, or extraordinary liquidity demands
  • Collecting & clearing payments between banks
  • Issuing bank notes for general circulation as currency
  • Administering the deposit accounts of the federal government
  • Conducting auctions and buybacks of federal debt
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