Which entity is responsible for overseeing the monetary policy in the United States?

The Federal Reserve System is the body responsible for overseeing monetary policy in the United States. Established in 1913, the Federal Reserve is the central bank of the country and plays a critical role in managing the nation’s economic stability. It has several key functions, including regulating the money supply, managing inflation, and influencing interest rates to achieve maximum employment and stable prices.

By adjusting the federal funds rate, which is the interest rate at which banks lend to each other overnight, the Federal Reserve can either encourage borrowing and investment by lowering rates or slow economic activity by raising rates. This ability to influence monetary conditions is essential for addressing economic fluctuations and maintaining stable growth.

The other entities mentioned do not have the same mandate regarding monetary policy. While the Treasury Department manages government revenue and spending, it does not directly control monetary policy; Congress primarily legislates and oversees fiscal policy, and the Securities and Exchange Commission regulates securities markets. Thus, the Federal Reserve System uniquely holds the responsibility for monetary policy in the United States.