What does the Boston Fed do?
As part of the United States’ central bank, the Boston Fed works to promote sound growth and financial stability in New England and the nation. We contribute to communities, the region, and the nation by conducting economic research, participating in monetary policymaking, supervising certain financial institutions, providing financial services and payments, playing a leadership role in the payments industry, and supporting economic wellbeing in communities through a variety of efforts.
Our role in monetary policy and economic research
The Boston Fed participates in U.S. monetary policy making through the bank president’s role on the Federal Open Market Committee, and by conducting data-intensive research and analysis on a wide range of economic, financial, and behavioral topics. Ultimately our focus is the dual mandate the Federal Reserve has been given by Congress – formulating monetary policy that achieves growth consistent with maximum sustainable employment, and stable prices, to benefit the American people.
Our supervisory and credit functions
The Boston Fed supervises banks that are state chartered members of the Federal Reserve System in the First District, bank holding companies, insurance focused savings and loan holding companies, and also certain large insurance companies. In doing so, we help to maintain the safety and soundness of the financial system.
The Federal Reserve also stands ready to serve as a lender of last resort to financial institutions in need of liquidity.
Our role in payments and the financial system
The Boston Fed conducts research and convenes experts to support the continued evolution of the payments system and underlying technologies and standards. We provide certain cutting-edge financial services for the U.S. Treasury. As part of the Federal Reserve System we also play roles in operating the underpinnings of the U.S. payments system – from ensuring the availability of cash to banks to supporting wire transfer operations.
We are also engaged in a variety of efforts in the cybersecurity realm aimed at mitigating risk to the overall financial system – through proactive risk management, including cyber-threat and best practice sharing among regional financial institutions.
Our role in community development in New England
The Boston Fed works on issues affecting low- and moderate-income individuals and families, including in New England’s postindustrial cities, and support efforts to promote household financial stability. We also research macroeconomic trends impacting economies in the New England states – providing a ground-level view to help policymakers make informed decisions.