What is the Federal Reserve System primarily responsible for in the United States?

The Federal Reserve System plays a crucial role in managing the country's monetary policy, which involves controlling the supply of money and interest rates in the economy. By adjusting these factors, the Federal Reserve aims to promote maximum employment, stable prices, and moderate long-term interest rates. This involves various tools such as open market operations, the discount rate, and reserve requirements, which help influence overall economic conditions.

The Federal Reserve works to maintain economic stability by responding to changes in the economy, such as inflation or unemployment rates, thereby directly impacting the financial health of individuals and businesses throughout the country. Their decisions and policies are pivotal in guiding the economy towards growth or contraction as needed, which illustrates why their primary responsibility centers on monetary policy management.