About
SPOTLIGHT
About Federal Reserve Bank Services
The Federal Reserve, the central bank of the United States, was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. The Federal Reserve carries out the nation’s monetary policy guided by the goals set forth in the Federal Reserve Act, namely “to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” The link between monetary policy and the economy occurs in the market for reserves. Reserves are balances held by depository institutions on deposit at the Federal Reserve Banks and the cash they hold in their vaults. Certain regulations and policies of the Federal Reserve affect the supply of and demand for reserves, such as those governing reserve requirements and lending by the Federal Reserve Banks to depository institutions. The Federal Reserve also collects regulatory and supervisory reports from financial institutions and other entities to carry out its various responsibilities. In addition to their role in monetary policy and banking supervision, each Federal Reserve Bank acts as a bank for banks and for the government.
Financial Services
Federal Reserve Financial Services is an integrated organization within the Federal Reserve that is responsible for managing critical payment and securities services that foster the accessibility, integrity and efficiency of the U.S. economy. Through its relationships with about 10,000 financial institutions nationwide, the Federal Reserve provides equitable access to a system that facilitates more than $5 trillion payments each day. Federal Reserve Financial Services, delivered via a secure FedLine® network, include FedCash® Services, FedACH® Services, Check Services, Fedwire® Funds and Securities Services, the National Settlement Service and more. The Federal Reserve also collaborates broadly with payments stakeholders on improvement initiatives (Off-site), to advance the end-to-end speed, security, efficiency of domestic and cross-border payments. This collaboration led to and has informed development of the FedNow® Service, a new instant payments infrastructure launched in 2023 that joins the FRFS product offering.
Central Bank Programs
The Federal Reserve carries out the nation’s monetary policy guided by the goals set forth in the Federal Reserve Act, namely “to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.”
The Federal Reserve Banks offer a range of tools and information to assist financial institutions in meeting reporting requirements and understanding policies governing reserve balances, term deposits, and discount window lending programs.
U.S. Treasury Services
The Federal Reserve acts as a fiscal agent or bank to the federal government by providing financial services to the United States Department of Treasury and by selling and redeeming government securities such as Savings Bonds and Treasury bills.