The function of the Federal Reserve in U.S. politics includes regulating the money supply, setting interest rates, and overseeing the country's banking system. It aims to promote maximum employment, stabilize prices, and moderate long-term interest rates by using monetary policy tools. The Fed's decisions have profound implications for the economy, influencing everything from inflation to lending practices. Additionally, it acts as a lender of last resort during financial crises, ensuring systemic stability. The Federal Reserve, through its independence from political influence, also plays a critical role in maintaining confidence in the U.S. economic system.