The Federal Reserve SystemThe Federal Reserve System, the central bank of the United States, is charged with administering and formulating the nation's credit and monetary policy. Through its supervisory and regulatory banking functions, the Federal Reserve maintains the safety and soundness of the nation's economy, responding to the nation's domestic and international financial needs and objectives. It also performs other functions, such as the transfer of funds, handling government deposits and debt issues, supervising and regulating banks, and acting as lender of last resort.