Which agency acts as the nation's banker and fiscal manager?

The United States Treasury is the agency that acts as the nation's banker and fiscal manager. This includes managing federal finances, collecting taxes, and issuing debt to fund government operations. The Treasury plays a vital role in the country’s economy by overseeing activities that relate to currency, economic policy, and the financial system’s stability.

In contrast, the Federal Reserve System primarily functions as the central bank of the United States, focusing on monetary policy, regulating banks, and ensuring stability within the financial system. While it has significant economic management responsibilities, it operates separately from the fiscal management duties of the Treasury.

Likewise, the Federal National Mortgage Association, commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation, or Freddie Mac, are government-sponsored enterprises that are primarily involved in the mortgage market. They do not manage federal finances or act as the nation's banker; instead, they help provide liquidity, stability, and affordability to the housing market. Their purpose is to ensure that mortgage lenders have enough funds to provide loans to homebuyers, but they do not perform the broader fiscal management functions associated with the Treasury.