The federal reserve system contributes to achieving economic and financial goals by influencing finance and credit in the economy. As the country’s central bank, it provides long-term economic growth within its capabilities while guaranteeing reasonable price stability. In short, the Fed seeks to pursue its policy in such a way as to deal with deflationary and inflationary processes as they arise. Thus, as a lender of last resort in a critical situation, it is responsible for using the policy tools to prevent a national liquidity crisis and financial panic. The Federal Reserve has been entrusted with many oversight and regulatory functions. For example, it is responsible for the amount of credit used to buy or sell securities. It regulates the foreign activities of all US banks and the activities of foreign banks. It monitors the laws governing the activities of bank holding companies, monitors state-registered banks that are members of the Fed, and establishes rules for protecting consumers. Their informing and honest attitude to them in certain credit operations.
As its main function, the Federal Reserve System creates and implements monetary policy; that is, it regulates the growth of deposits and loans of commercial banks and loan and savings institutions. Monetary control gives the US federal government powerful leverage to control economic activity and price levels. In addition, the range of administrative and monitoring activities of the Fed does not end at this. It is comprehensive, which starts from acting as a fiscal agent of the State Treasury to managing bank holding companies to clearing checks and providing the necessary amount of cash. The Federal Reserve is an independent organization, and it cannot be abolished at the President’s whim. Congress, too, cannot change its role and functions other than as a special legislative act. The long terms of office of the Council members are intended to protect and isolate them from political pressure.