The Federal Reserve (Fed)

The Federal Reserve, or Fed, is the U.S. central bank responsible for managing the country’s monetary policy. It influences interest rates, controls inflation, and promotes stable economic growth by adjusting the money supply and overseeing banking systems. The Fed also acts as a lender to banks during financial emergencies and regulates financial institutions to ensure stability. It operates independently of the government but serves the public’s interest, aiming to maintain a healthy economy by balancing employment, price stability, and financial security.