# Federal Reserve

*Macro & Economy — Finicade finance glossary*

The Federal Reserve is the US central bank, with a dual mandate for maximum employment and stable prices — unusual among inflation-targeting peers.

The Federal Reserve is the US central bank, with a dual mandate for maximum employment and stable prices — unusual, since most central banks target inflation alone. It's structured as a Washington board plus twelve regional banks, a compromise designed to spread power geographically. Its decisions set the price of dollars, which makes it the most consequential single institution in global finance.

**Also known as:** the Fed, Fed, US central bank

**Related terms:** [FOMC](https://finicade.com/glossary/fomc), [Federal Funds Rate](https://finicade.com/glossary/federal-funds-rate), [Monetary Policy](https://finicade.com/glossary/monetary-policy), [Central Bank](https://finicade.com/glossary/central-bank), [Discount Window](https://finicade.com/glossary/discount-window)

Source: https://finicade.com/glossary/federal-reserve