As the U.S. central bank, the Federal Reserve carries out a number of functions that affect the nation's economic well-being. Through monetary policy, which influences the availability of money and credit, the Fed plays a major role in keeping inflation in check while promoting economic growth. By supervising and regulating commercial banks, the Fed fosters the U.S. financial system's safety and soundness. And by providing check-clearing and other payments services to depository institutions and the federal government, the Fed helps make commercial transactions more efficient.