No private individual or company owns the Federal Reserve. It is the central bank of the United States, created by Congress through the Federal Reserve Act of 1913. Kevin Warsh became its chair on May 22, 2026, succeeding Jerome Powell.
- Congress established the Federal Reserve in 1913.
- The system runs 12 regional Federal Reserve Banks.
- The Board of Governors holds 7 seats.
- Total assets stood near $6.7 trillion in May 2026.
- The federal funds target rate sat at 3.50%–3.75% in mid-2026.
Federal Reserve total assets, in trillions of dollars (2007–2026)
Federal Reserve Key Statistics
The figures above frame how the Federal Reserve has grown. Its balance sheet expanded after the 2008 crisis and the 2020 pandemic, then contracted as policymakers wound down asset holdings.
Who Owns the Federal Reserve?
The Federal Reserve has no owners in the way a corporation does. Congress created it as the nation’s central bank, and Congress can change it by law.
Its policy body, the Board of Governors, is a federal agency in Washington. The 12 regional Reserve Banks are organized like private corporations, with member commercial banks holding their stock. That stock carries no control over policy and pays a dividend fixed by statute.
The Federal Reserve Origin, Founders and Early Years
Congress passed the Federal Reserve Act in December 1913, and President Woodrow Wilson signed it. The law answered the Panic of 1907, when bank runs spread and private financiers had to prop up the system. Lawmakers wanted a public body that could supply currency and steady credit during crises.
The Jekyll Island Meeting and the System’s Architects
Planning began away from public view. In 1910 a small group, including Senator Nelson Aldrich and bankers Paul Warburg, Henry Davison and Frank Vanderlip, met on Jekyll Island, Georgia. There they drafted the blueprint that shaped the eventual act.
Largest Member-Bank Stockholders of the Federal Reserve
JPMorgan Chase
- Largest U.S. bank by assets.
- Member of the New York Fed district.
- Required to subscribe Reserve Bank stock.
Bank of America
- Second-largest U.S. bank by assets.
- Member bank holding district stock.
- Receives the statutory dividend.
Citibank
- National bank inside the system.
- Long-standing Federal Reserve member.
- Holds non-transferable Reserve Bank shares.
Wells Fargo
- Major national member bank.
- Subscribes capital to its district bank.
- No voting power over monetary policy.
What This Stock Means
Member banks subscribe 6% of their capital to the regional Reserve Bank, with 3% paid in. The shares cannot be sold or traded, grant no policy control, and pay a dividend capped by law.
Who Is on the Board of Directors for the Federal Reserve?
Leadership
Supervision and Regulation
Economics and Research
The Federal Reserve Mission Statement
The Federal Reserve describes its purpose as providing the nation with a safe, flexible and stable monetary and financial system. Congress set its core goals in law.
The central charge is the dual mandate: maximum employment and stable prices, alongside moderate long-term interest rates. The Federal Open Market Committee treats 2% annual inflation as the target consistent with that mandate.
Beyond rate decisions, the Fed works to keep the financial system stable, supervise banks, and run the payment channels that move dollars. Its mission stretches from everyday transactions to digital money, a shift visible in the rise of central bank digital currencies and cashless economies.
How Did the Federal Reserve Get Its Name?
The name comes straight from the Federal Reserve Act of 1913. Each word marks a feature of the institution Congress designed.
“Federal” signals its national, government-chartered character, set apart from any single state bank. “Reserve” points to the reserves that member banks must hold and to the system’s role as a backstop, a pool of strength banks can draw on when stress hits.
The full title, the Federal Reserve System, captures its layered build: a central Board of Governors plus 12 regional Reserve Banks. That federated structure also shaped later debates about how banking-as-a-service is reshaping financial access.
The Federal Reserve Products and Services
Monetary Policy
Sets the federal funds target range to steer inflation and employment toward the dual mandate.
Payment Systems
Runs Fedwire, FedNow and check and ACH clearing so money moves between banks.
Currency Distribution
Distributes paper notes and coin to banks, replacing worn bills across the country.
Bank Supervision
Examines and regulates member banks and large financial firms to check risk.
Financial Stability
Acts as lender of last resort, supplying liquidity when markets seize up.
Government Banking
Holds the U.S. Treasury’s account and processes federal deposits and payments.
Federal Reserve assets by type, approximate share (2026)
Securities make up the bulk of what the Fed holds. Treasury debt and agency mortgage-backed securities together account for roughly 95% of its assets. That mix also feeds the wider argument about money and value seen in the debate over whether stablecoins hold their value.
FAQ
Is the Federal Reserve still operational?
Yes. The Federal Reserve operates as the central bank of the United States in 2026. It sets monetary policy, supervises banks, and runs national payment systems from Washington and 12 regional banks.
Who owns the Federal Reserve?
No private person or firm owns it. Congress created the Federal Reserve and oversees it. Member commercial banks hold stock in regional Reserve Banks, but that stock grants no control over policy.
What is the Federal Reserve’s market cap in 2026?
The Federal Reserve has no market cap. It is a government central bank, not a publicly traded company, so it issues no shares on any exchange and reports no stock price.
When did the Federal Reserve come out?
Congress passed the Federal Reserve Act in December 1913, and President Woodrow Wilson signed it that month. The system opened in 1914, created in response to the Panic of 1907.
Is the Federal Reserve an American company?
It is the United States central bank, not a private company. Congress chartered it through federal law. Its Board of Governors is a federal agency, while the regional Reserve Banks blend public duties with a corporate structure.
