<human>:  What is the purpose of the Federal Reserve System?
<bot>: The purpose of the Federal Reserve System is to promote the effective operation of the U.S. economy and financial system by providing a safe, flexible, and stable monetary and financial environment. The Federal Reserve System is responsible for setting monetary policy and regulating banks and other financial institutions, monitoring and maintaining the safety and soundness of the banking system, providing payment services, protecting consumers, and contributing to the stability of the overall economy.