The Federal Reserve System (also known as the Federal Reserve, and informally as the Fed) is the central bank

Central bank

A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...

ing system of the United States. It was created on December 23, 1913 with the enactment of the Federal Reserve Act

Federal Reserve Act

The Federal Reserve Act is an Act of Congress that created and set up the Federal Reserve System, the central banking system of the United States of America, and granted it the legal authority to issue Federal Reserve Notes and Federal Reserve Bank Notes as legal tender...

, largely in response to a series of financial panics, particularly a severe panic in 1907

Panic of 1907

The Panic of 1907, also known as the 1907 Bankers' Panic, was a financial crisis that occurred in the United States when the New York Stock Exchange fell almost 50% from its peak the previous year. Panic occurred, as this was during a time of economic recession, and there were numerous runs on...

. Over time, the roles and responsibilities of the Federal Reserve System have expanded and its structure has evolved.