Who implements monetary policy in the United States?

Monetary policy in the United States is implemented by the Federal Reserve System, which is the central banking system of the country. The primary role of the Federal Reserve is to manage the nation's money supply and interest rates to promote maximum employment, stable prices, and moderate long-term interest rates. It does this through various tools, including open market operations, the discount rate, and reserve requirements.

The Federal Reserve conducts monetary policy to influence economic activity, aiming to control inflation and stabilize the currency. By adjusting the money supply and interest rates, the Federal Reserve can effectively respond to changing economic conditions, helping to steer the economy towards desired objectives such as growth and stability.

In contrast, other choices like the Department of Commerce and the Treasury Department have different roles focused on trade, economic analysis, and fiscal policy rather than monetary policy. The Office of Management and Budget primarily deals with the preparation of the federal budget and performance evaluation, making it separate from the functions of monetary policy. Each of these entities contributes to the economic framework but does not directly implement monetary policy as the Federal Reserve does.