Which entity is responsible for regulating reserve requirements?

The Federal Reserve is responsible for regulating reserve requirements as part of its broader mandate to implement monetary policy and stabilize the financial system. Reserve requirements are the amount of funds that a bank must hold in reserve against deposits made by customers. By adjusting these requirements, the Federal Reserve can influence the amount of money that banks are able to lend. This, in turn, affects the overall money supply in the economy, which is a crucial tool in managing inflation and promoting economic stability.

The Federal Reserve's ability to regulate these reserve requirements allows it to respond to changes in the economic environment and ensure that banks maintain sufficient liquidity to meet customer demands. This focuses on sustaining consumer confidence and financial system stability, especially during economic fluctuations.

Other entities mentioned, while important in their respective roles, do not have the authority to regulate reserve requirements. The Consumer Financial Protection Bureau primarily focuses on protecting consumers in the financial sector rather than managing monetary policy. The Department of Treasury manages federal finances but does not set reserve requirements for banks. The Office of the Comptroller of the Currency supervises and regulates national banks and federal savings associations, but it falls under the regulations established by the Federal Reserve regarding reserve requirements.