The Federal Reserve
The Federal Reserve, often called the Fed, is the central bank of the United States. Established in 1913, it manages the country's money supply and regulates financial institutions. Its main responsibilities include setting interest rates to control inflation, supervising banks to ensure stability, and acting as a lender of last resort during financial crises. The Fed aims to promote maximum employment, stable prices, and moderate long-term interest rates, playing a crucial role in maintaining the overall health of the U.S. economy.
Additional Insights
-
The Federal Reserve, often called the Fed, is the central bank of the United States. It was established to provide a stable monetary system. The Fed manages the country’s money supply and interest rates, supervises banks, and aims to promote maximum employment and stable prices. By adjusting interest rates and using other tools, the Fed can influence economic growth and inflation. It also serves as a bank for the U.S. government and operates to support the overall financial system, ensuring the economy runs smoothly.