Which body is chiefly responsible for the U.S. monetary policy?

The Board of Governors is chiefly responsible for U.S. monetary policy as it serves as the governing body of the Federal Reserve System, which is the central banking system of the United States. The Board of Governors plays a crucial role in setting the nation’s monetary policy, influencing interest rates, and regulating the money supply to promote maximum employment, stable prices, and moderate long-term interest rates.

Through its various functions, such as setting the federal funds rate target and overseeing open market operations, the Board effectively manages inflation and ensures the stability of the financial system. Its decisions have far-reaching implications for economic growth and financial stability in the country.

In contrast, the other mentioned bodies serve different purposes. The Federal Deposit Insurance Corporation focuses on maintaining public confidence in the U.S. financial system and protecting depositors by insuring bank deposits. The Resolution Trust Corporation was established to manage and resolve failed savings and loan associations during the 1980s crisis. The Uniform Commercial Code is a set of laws that govern commercial transactions but does not engage in monetary policy.