Who is responsible for setting monetary policy in the United States?

The Federal Reserve is the entity responsible for setting monetary policy in the United States. It operates independently from the government, although it is subject to oversight by Congress. The Federal Reserve manages the country's money supply and interest rates, aiming to promote maximum employment, stable prices, and moderate long-term interest rates. By using tools such as open market operations, the discount rate, and reserve requirements, the Federal Reserve influences economic activity and maintains the stability of the financial system.

In contrast, other entities, such as the U.S. Treasury or Congress, play roles in fiscal policy, which involves government spending and taxation decisions rather than monetary policies related to the money supply. The president provides executive leadership and can influence economic policy, but the direct responsibility for monetary policy lies with the Federal Reserve.