The U.S. Federal Reserve, commonly referred to as the Fed, is the central banking system of the United States. It is responsible for overseeing the nation's banking and financial systems and setting monetary policy. The Fed is responsible for setting interest rates, regulating the money supply, and providing banking services to the government and financial institutions. The Fed also has the authority to lend money to financial institutions in times of financial distress and to create new regulations to help ensure the stability of the financial system. In addition, the Fed serves as a lender of last resort, providing liquidity to the banking system and ensuring that the economy remains stable. Ultimately, the Fed works to promote economic prosperity and financial stability.