Meaning & use
Federal Reserve System
Last updated
Meaning
proper nounproperbusinessfinanceAmerican
The central bank of the United States, which controls the money supply and supervises banks.
Grammar: Used with "the" and a singular verb: The Federal Reserve System sets interest rates.
Patterns
- the Federal Reserve System sets something
- the Federal Reserve System raises/lowers interest rates
The Federal Reserve System raised interest rates again to slow inflation.
Economists watched the Federal Reserve System closely before the meeting.
The Federal Reserve System was created in 1913 to stabilize the banking industry.
Common combinations
- the Federal Reserve System raises rates
- When the Federal Reserve System raises rates, borrowing becomes more expensive.
- the Federal Reserve System supervises banks
- The Federal Reserve System supervises banks to keep the financial system safe.
- the Federal Reserve System's policy
- The Federal Reserve System's policy affects mortgages and savings accounts.
- the Federal Reserve System announced
- The Federal Reserve System announced a change in its bond-buying program.
Synonyms and how they differ
- the Fed
- Informal short name for the same institution, very common in news and conversation.
- central bank
- A general term for any country's main bank; the Federal Reserve System is the US one.
Word family
- Federal Reserve proper noun
- The shorter official name often used before nouns, as in "Federal Reserve policy".
Commonly confused: Federal Reserve System or Federal Reserve Bank?
Federal Reserve System vs Federal Reserve Bank
There are twelve regional Federal Reserve Banks; the Federal Reserve System is the whole network led by the Board of Governors.
Practice
Which sentence uses the Federal Reserve System correctly?
Choose one answer.
The name takes the definite article "the" and a singular verb "raised". Option An is missing "the"; option C uses "a", which suggests one of several; option D has a plural verb with a singular subject.
Make it your own
Write a sentence using “Federal Reserve System”, then check it and compare it with the examples above.