# Federal Reserve Divides Central Banking Work Among Three Bodies

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/26149
Published: 2026-10-01T12:24:08.000Z
Updated: 2026-10-01T12:24:08.000Z
Section: Regulation

> The Board of Governors oversees 12 regional Reserve Banks, while a 12-member committee sets monetary policy.

The Federal Reserve System divides central banking responsibilities among a national Board of Governors, 12 regional Reserve Banks and a committee that sets monetary policy.

The Federal Reserve Act of 1913 established the system to help the United States respond to banking system stress. The Board oversees the Reserve Banks, which handle regional operations, while the Federal Open Market Committee (FOMC) determines the stance of monetary policy.

The Board has seven members nominated by the president and confirmed by the Senate. They serve staggered 14-year terms.

The 12 Reserve Banks operate 24 branches across the country. Their duties include supervising and examining financial institutions, lending to depository institutions, processing payments and gathering information about economic conditions in their districts.

The FOMC has 12 voting members: the seven governors, the president of the Federal Reserve Bank of New York and four other Reserve Bank presidents. Those four seats rotate among the other Reserve Bank presidents on one-year terms. Reserve Bank presidents without a vote still attend FOMC meetings and join the deliberations.

The FOMC holds eight or more meetings annually. Its monetary policy work aims to support maximum employment and price stability, goals set by Congress.