The establishment of the Federal Reserve System in the United States aimed to create a central banking authority to provide stability to the financial system and address issues related to bank failures and economic panics. Formed in response to the banking crises of the late 19th and early 20th centuries, the Federal Reserve serves several key purposes, including regulating monetary policy, supervising and regulating banks, and providing financial services to the government. By stabilizing the currency and acting as a lender of last resort, the Federal Reserve plays a crucial role in promoting economic growth and reducing the risks of financial instability.