Reply #5: The federal reserve system is the central bank of the united states

[bossy22]

It is an independent (like many central banks so that they aren't influenced politics) central bank that was created after the panic of 1907 showed the deficiencies in the "free banking theory". It is self funded, but must return all operating profits to the u.s. Treasury. It is the lender of last resort for both the government and the banks, making sure there is enough liquidity in the system.

Conspiracy theories are fun, but eventually you must return to reality. If you want to know more about the fed I suggest Wikipedia or just a general google search