What primary function does the Federal Reserve perform that was altered by the Deregulation Act of 1980?

The primary function of the Federal Reserve that was significantly altered by the Deregulation Act of 1980 relates to how it charges for its services. Before the act, the Federal Reserve provided various services to financial institutions, such as check processing and wire transfers, without directly imposing fees. The Deregulation Act allowed the Federal Reserve to implement fees for these services, which represented a shift in how the central bank interacted with private financial institutions.

This change in the pricing structure represented a broader trend towards deregulation in the banking industry during that period, moving away from a model of free services and beginning to incorporate a more business-like approach to the Federal Reserve's operations. This has implications for how banks and other financial institutions manage their expenses and anticipate costs associated with Federal Reserve services, thus more fully integrating the Fed into the commercial banking system.

By contrast, the establishment of monetary policy, oversight of foreign exchange rates, and regulation of consumer credit are functions that were not primarily affected by the Deregulation Act. These areas remain crucial aspects of the Federal Reserve's role in the economy but were not the focus of the legislative changes introduced in 1980.