The Federal Reserve system was established in 1913 as an independent federal agency with 12 regional banks and a board of governors to operate as the central bank of the United States. Its decisions significantly impact the banking systems, businesses, and the public.The Board is run by 7 members nominated by the Presidents and confirmed by the Senate to serve a one-time 14-year term; they can’t be fired or reappointed. This makes the board somewhat independent from current politics.