Final answer:
The Federal Reserve banks are owned by member private commercial banks within their district. These banks elect directors and hence, the Fed operates as a mix of private-sector ownership and federal government oversight.
Step-by-step explanation:
The Federal Reserve, often abbreviated as 'the Fed,' is the central bank of the United States. The ownership of the Federal Reserve banks is unique in that the banks are owned by the private commercial banks in each district which are members of the Federal Reserve System.
These member banks hold stock in their district's Federal Reserve bank, but it is not the same as publicly-traded stock since it cannot be sold or traded. Member banks also elect a Board of Directors for each regional Federal Reserve bank, which in turn selects a president for the region. The Fed's structure is a blend of private-sector governance through these member banks with public-sector oversight as the governors are appointed by the President and confirmed by the Senate, making the Fed a unique entity of public and private partnership.