The Fed has several key functions, including:

1. Conducting monetary policy: The Fed uses monetary policy tools such as adjusting interest rates and controlling the money supply to stabilize the economy and achieve its policy goals.
2. Regulating banks: The Fed is responsible for supervising and regulating banks and other financial institutions to ensure the stability of the financial system.
3. Providing financial services: The Fed provides financial services such as check clearing and electronic funds transfers to banks and other financial institutions.
4. Acting as a lender of last resort: The Fed acts as a lender of last resort, providing loans to banks and other financial institutions during times of financial stress.