- noun a system of federal government control of the US banks, in which the Federal Reserve Board regulates money supply, prints money, fixes the discount rate and issues government bonds. The system is the central bank of the USA. It is run by the Federal Reserve Board, under a chairman and seven committee members (or governors) who are all appointed by the President. The twelve Federal Reserve Banks and their twenty-five branches act as lenders of last resort to local commercial banks. Although the board is appointed by the President, the whole system is relatively independent of the US government.
- noun the national system of banks in the United States