Which agency is primarily responsible for monitoring and controlling the US money supply?

The Federal Reserve, also known as the Fed, is the primary agency responsible for monitoring and controlling the US money supply. As the central bank of the United States, the Fed implements monetary policy through various tools, including open market operations, the discount rate, and reserve requirements. These actions influence interest rates and the overall availability of money in the economy.

By adjusting the money supply, the Federal Reserve aims to achieve its dual mandate: promoting maximum employment and maintaining stable prices. The Fed's ability to effectively manage the money supply is crucial for sustaining economic growth and controlling inflation, directly impacting consumers and businesses alike.

In contrast, the Treasury Department primarily manages federal finances, including tax collection and the issuance of government debt, but it does not control the money supply. The Financial Stability Board focuses on international financial stability and regulatory policies rather than direct monetary policy in the U.S. Lastly, the Congressional Budget Office is responsible for providing budgetary and economic analysis to Congress, which does not encompass controlling the money supply. Thus, the Federal Reserve's role is distinctive and essential in the context of monetary policy and the U.S. economy.