From Traderpedia

Definition: The central banking system of the United States.

Also known as The Fed, it is comprised of a central Board of Governors (located in Washington, D.C.) and twelve regional Federal Reserve Banks located in major cities across the country.

[edit] Role of the Fed

The main points to remember of the Federal Reserve are:

• Its purpose is to supervise and regulate American fiscal policy.
• Fed policy is controlled by American banks who sit on the Fed's board, not the American government.
• Implement Monetary Policy by buying and selling U.S. Treasury Bonds and anything else it deems necessary
• Maintain a strong payments system

Federal Reserve web site