( abbr the FRS ) ( also infml the Fed )
the central bank system of the United States that controls the supply of money and therefore the nation’s economy. It was established by the Federal Reserve Act of 1913. Its Federal Reserve Banks deal with commercial banks in their regions. All national banks must join the system and state banks, savings and loan associations and credit unions may join with the Fed’s approval. The system is directed by seven people appointed by the US President , and their chairman is extremely powerful. Alan Greenspan (1926– ) has had this job since 1987.