Which organization is the central bank of the United States responsible for monetary policy?

The Federal Reserve, often referred to as the Fed, serves as the central bank of the United States and plays a crucial role in the country's monetary policy. Its primary responsibilities include regulating the money supply, managing inflation, and overseeing the stability of the financial system. By adjusting interest rates and using other monetary tools, the Fed influences both the availability of money and credit in the economy, thereby impacting overall economic activity. This central role in managing monetary policy is essential for supporting employment, stabilizing prices, and fostering a healthy financial environment, making the Federal Reserve the correct choice in this context.

In contrast, the International Monetary Fund and the World Bank focus on international financial stability and development rather than domestic monetary policy, while the U.S. Treasury is primarily responsible for managing government revenue and debt, rather than being the central authority on monetary policy.