Every region or nation has a central body responsible for overseeing its monetary and economic policies, ensuring that the financial system remains quite stable. It is a body which is referred to as the central bank. Unlike with the investment and commercial banks, the institutions are not market based and they are not in competition.

Majority of the central banks are normally concerned with inflation, which are the price movements from services and goods. They are the ones that keep the inflation in like with the interest rates. An example is where the central bank will go ahead and increase the interest rates when the inflation is exceeding its targets so that growth is slowed down. On the other hand, lower interest rates whenever the inflation drops below the target of the ban to spur growth.

Most of the central banks in the world tend to be quite independent to their federal governments and thus, the general population. The following are some of the worlds leading central banks as described by exness.

Fed – The USA Federal reserve system

The federal reserve which is commonly known as the Fed is the United States of America central bank. It might be the central bank which is most influential in the whole world. With the US dollars used for the 90% of the world currency for transactions, the Fed tends to sway as a sweeping effect on the valuation of majority of the currencies.

The Fed is the one which is responsible for ensuring that the USA economy is one that operates effective way while having to keep the best interests for the public in their minds. It normally does this through having to perform five main functions which is able to promote monetary policy, the soundness of the individual financial institutions, the financial stability, the settlement systems, and the safety payment

There are three distinct groups for Feds:

• The board of governors:  It is a group that works independently of the USA government but reports to the Congress directly, which is the one that oversees the Fed. The seven governors or rather the board members are normally nominated by the USA president and then the US senate confirms them. The board is the one which is responsible for having to maintain the goals of the Fed. Each of the board members severs on the FOMC – the federal open market committee.
• The Federal Reserve banks:  It is a group that is made up of 12 regional banks, overseeing the various parts of the country. They are normally located in San Francisco, Dallas, Kansas City, Minneapolis, St. Lois, Chicago, Atlanta, Richmond, Cleveland, Philadelphia, New York and Boston. The banks are normally supervised by the board of the Feds.
• The federal open market committee: It is a group that is also referred to as FOMC, and it comprises of the board member, and the 12 presidents that comes from the reserve banks. The FOMC chair is the head of the Federal Reserve board.