The Federal Reserve, as we often say, is an independent institution authorized by the U.S. Congress and consists of member banks. It is not only independent of the US government, but also independent of Congress. Therefore, in terms of ownership, the Fed is not state-owned. However, the Federal Reserve exercises the power of the central bank and is responsible for formulating and implementing monetary policy. Members of the Federal Reserve Committee are nominated by the President and appointed by the Senate. Functionally, the Federal Reserve is similar to a government agency.