Which governmental entity is responsible for creating money and regulating interest rates?

The Federal Reserve is the governmental entity responsible for creating money and regulating interest rates within the United States. It plays a pivotal role in the nation's monetary policy by controlling the money supply and influencing interest rates to promote economic stability and growth. This is achieved through various tools such as open market operations, the discount rate, and reserve requirements.

The Federal Reserve's primary objectives include maximizing employment, stabilizing prices, and moderating long-term interest rates, which are crucial for a healthy economy. By adjusting interest rates, the Federal Reserve can either encourage borrowing and investment in times of economic downturn or cool down an overheating economy by making borrowing more expensive.

In contrast, the Department of Treasury is primarily responsible for managing federal finances, producing currency, and overseeing financial institutions but does not directly regulate interest rates. The Office of Comptroller of Currency supervises national banks but does not create money or set interest rates. The Securities and Exchange Commission focuses on regulating the securities industry, protecting investors, and maintaining fair and efficient markets, rather than monetary policy.