There are 12 Federal Reserve Banks spread across the United States, each serving a specific region
The Federal Reserve System is not one central bank—it is a network of 12 regional Federal Reserve Banks, each responsible for a different part of the country. These banks are located in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. Each one operates as a separate corporation owned by the commercial banks in its region, though they all work under the oversight of the Federal Reserve Board in Washington, D.C.
The regional structure exists because the United States is too large for a single bank to manage effectively. A bank in San Francisco handles different economic conditions, industries, and financial institutions than a bank in New York. The regional approach lets each Federal Reserve Bank understand its local economy and respond to regional needs while still following national monetary policy set by the Federal Reserve Board.
Key Takeaways
- The 12 Federal Reserve Banks are independent corporations, not government agencies, though they operate under federal law and the oversight of the Federal Reserve Board.
- Each regional bank serves a specific geographic area and handles banking services for the commercial banks, credit unions, and other institutions in that region.
- The Federal Reserve Board in Washington sets national monetary policy, but the regional banks carry out that policy and manage day-to-day operations like check clearing and currency distribution.
- The New York Federal Reserve Bank is the largest and most prominent because it oversees financial markets and handles transactions involving the U.S. Treasury and foreign central banks.
What each regional Federal Reserve Bank actually does
Each Federal Reserve Bank operates as a banker's bank. Commercial banks, credit unions, and other financial institutions hold accounts at their regional Federal Reserve Bank, the same way you might hold an account at a commercial bank. The Federal Reserve Bank clears checks, processes electronic payments, and distributes currency and coins to the banks in its region.
The regional banks also supervise and examine the banks within their territory to make sure they follow federal banking rules. They lend money to banks that need short-term funding through what is called the discount window. During financial crises—like 2008 or 2020—the regional banks become the primary channel through which the Federal Reserve injects money into the financial system.
Beyond banking operations, each regional bank employs economists who research their local economy and publish reports on regional economic conditions. These reports feed into the decisions made by the Federal Reserve Board about interest rates and monetary policy.
How the 12 regions are divided
| Federal Reserve Bank | Location | States Served |
|---|---|---|
| Boston | Boston, Massachusetts | Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont |
| New York | New York City, New York | New Jersey, New York, Connecticut (part), Pennsylvania (part) |
| Philadelphia | Philadelphia, Pennsylvania | Delaware, New Jersey (part), Pennsylvania (part) |
| Cleveland | Cleveland, Ohio | Ohio, Kentucky (part), Pennsylvania (part), West Virginia (part) |
| Richmond | Richmond, Virginia | Virginia, West Virginia (part), North Carolina, South Carolina, Maryland, District of Columbia |
| Atlanta | Atlanta, Georgia | Georgia, Florida, Alabama, Tennessee (part), Louisiana (part), Mississippi |
| Chicago | Chicago, Illinois | Illinois, Indiana, Iowa, Michigan, Missouri (part), Wisconsin |
| St. Louis | St. Louis, Missouri | Missouri (part), Arkansas, Illinois (part), Indiana (part), Kentucky (part), Mississippi (part), Tennessee (part) |
| Minneapolis | Minneapolis, Minnesota | Minnesota, Montana, North Dakota, South Dakota, Wisconsin (part) |
| Kansas City | Kansas City, Missouri | Kansas, Nebraska, Oklahoma, Wyoming, Colorado (part), Missouri (part), New Mexico (part) |
| Dallas | Dallas, Texas | Texas, Louisiana (part), New Mexico (part) |
| San Francisco | San Francisco, California | California, Nevada, Utah, Oregon, Washington, Alaska, Hawaii, Guam |
The boundaries were drawn in 1913 when the Federal Reserve System was created, based on where banks and commerce were concentrated at that time. Some states are split between two regions because population and economic activity were not evenly distributed. The San Francisco Federal Reserve Bank covers the largest geographic area, including Alaska and Hawaii, while the New York Federal Reserve Bank covers the densest financial center in the country.
These regional divisions have remained unchanged for over a century, even as the U.S. economy has shifted dramatically. The Midwest and South have grown significantly since 1913, but the Federal Reserve has not redrawn the map. This means some regions now handle much more economic activity than others, with the New York and San Francisco districts managing substantially larger financial markets than smaller regions like Boston or Minneapolis.
Why the New York Federal Reserve Bank is different
The Federal Reserve Bank of New York holds a special position within the system. It operates the Open Market Desk, which is the operational center for all Federal Reserve monetary policy decisions. When the Federal Reserve Board decides to raise or lower interest rates, the New York Fed executes those decisions by buying and selling government securities in the financial markets.
The New York Fed also manages the Federal Reserve's foreign exchange operations and holds the gold reserves that back U.S. currency. It serves as the banker for the U.S. Treasury Department and handles transactions with foreign central banks. Because of these responsibilities, the president of the New York Federal Reserve Bank is often considered the second-most powerful person in the Federal Reserve System after the Federal Reserve Board Chair.
How regional banks connect to the Federal Reserve Board
The Federal Reserve Board, located in Washington, D.C., sets the overall direction for monetary policy and supervises the regional banks. The Board consists of seven governors appointed by the President and confirmed by the Senate, including the Chair and Vice Chair. The Board meets regularly with the presidents of the 12 regional Federal Reserve Banks to discuss economic conditions and policy decisions.
This structure creates a balance between centralized policy and regional input. The Board makes the big decisions about interest rates and money supply, but the regional banks provide information about what is actually happening in their local economies. The presidents of the regional banks also vote on monetary policy decisions—though the voting structure gives more weight to some banks than others, with the New York Fed president always voting.
What happens if you need to contact a Federal Reserve Bank
If you are a consumer with a question about banking, you would not normally contact a Federal Reserve Bank directly. The Federal Reserve Banks serve other banks and financial institutions, not the public. If you have a complaint about a bank's practices, you would file it with the Consumer Financial Protection Bureau or your state banking regulator.
However, if you work in banking or finance and need information about Federal Reserve operations, each regional bank has a public website with contact information for its research department and communications office. The Federal Reserve Board's main website at federalreserve.gov provides information about monetary policy, economic research, and banking supervision that applies across all 12 regions.
Frequently Asked Questions
Can I open an account at a Federal Reserve Bank?
No. Federal Reserve Banks only serve other financial institutions—banks, credit unions, and similar organizations. They do not offer accounts or services to individuals or businesses. If you need banking services, you would open an account at a commercial bank in your area.
Does every state have its own Federal Reserve Bank?
No. Only 12 Federal Reserve Banks exist, so most states are part of a larger region served by one bank. Some states are split between two regions. The boundaries were set in 1913 and have not changed since then, even though population and economic activity have shifted significantly.
Who owns the Federal Reserve Banks?
The commercial banks in each region own their Federal Reserve Bank as member banks. However, the Federal Reserve Board in Washington oversees all 12 banks and sets policy. The regional banks are not government agencies, but they operate under federal law and serve a public purpose as part of the nation's central banking system.
What is the difference between the Federal Reserve and the Federal Reserve Banks?
The Federal Reserve is the entire system, including the Federal Reserve Board in Washington and the 12 regional Federal Reserve Banks. The Board sets monetary policy, while the regional banks carry out that policy and manage banking operations in their territories. Together, they make up the central banking system of the United States.