Federal Reserve System (Fed)

The Federal Reserve System, or Fed, performs the function of USA’s central bank. This bank system was established in 1913 after passing the law on the federal reserve system. Although formally the Fed is independent from the government and its decisions need not be approved by the administration, its very structure entails accountability before the administration and the public. The council of Fed managers represents the interests of the state, whereas federal banks represent private interests, since presidents are elected from the local residents. Moreover, to increase independence from the government, the Fed funds itself.