Federal Reserve (U.S.)

The Federal Reserve, often called the Fed, is the central bank of the United States. It manages the country’s money supply, aims to keep inflation stable, and supports maximum employment. The Fed influences interest rates by setting the benchmark rate, which affects borrowing costs for consumers and businesses. It also oversees the banking system's stability and acts as a lender of last resort during financial crises. Through these actions, the Fed helps maintain a healthy economy, ensuring money remains reliable and accessible while controlling inflation and promoting growth.