The Federal Reserve - also called "The Fed" - oversees the nation's system of money and credit. They print money, control how much is available, adjust long-term interest rates and help steer the economy in the right direction by keeping prices stable and promoting high employment. Many people think the Fed is part of the government, but it's actually an independent institution with some governmental oversight. To carry out its mission, the Fed is organized into three parts: a Board of Governors, 12 regional Reserve banks, and the Federal Open Market Committee (FOMC).
The Board of Governors ensures that banks behave responsibly. It supervises the 12 Reserve Banks and helps decide monetary policy, like how much money is available to the economy.
The Reserve Banks are the banks out in the field. They collect data and research on the economy and keep an eye on the banks in their regions. They also provide financial services to other banks and to the U.S. government.
Lastly, the FOMC is a committee of the Federal Reserve Board that decides the nation's policies about the money supply and interest rates charged to banks.
All of these parts work together to ensure that the banking system is safe and stable. This means that when you deposit money into your own account, you can have confidence that it will be there when you need it.