Topics
Federal Reserve
The Federal Reserve, also known as the Fed, is the central bank of the United States. It was created in 1913 with the passage of the Federal Reserve Act and is responsible for implementing monetary policy in the United States.
The Fed has several key functions, including:
- Conducting monetary policy: The Fed uses monetary policy tools such as adjusting interest rates and controlling the money supply to stabilize the economy and achieve its policy goals.
- Regulating banks: The Fed is responsible for supervising and regulating banks and other financial institutions to ensure the stability of the financial system.
- Providing financial services: The Fed provides financial services such as check clearing and electronic funds transfers to banks and other financial institutions.
- Acting as a lender of last resort: The Fed acts as a lender of last resort, providing loans to banks and other financial institutions during times of financial stress.