Question

What is meant when economists say the Federal Reserve System is our central bank and is quasi-public in nature?

Answer 1

Federal Reserve System is considered our central bank because the Fed's main duties include conducting national monetary policy, supervising and regulating banks, maintaining financial stability, and providing banking services. Because these duties are exactly the same as of the central banks of other countries, it is reasonable to call the Fed our central bank.

The Fed is quasi-public in nature because its neither fully public nor fully ptivate. It is public in the sense that it was created by the government, its members are appointed by the senate, it makes no profit and is overseen by Congress. But its private in the sense that neither executive nor judiciary get a say in its operations, it pays itself for its operations and its policies are independent. So because it is both public and private, it is often called quasi-public in nature.