Did you know The Federal Reserve (The Fed) is the central bank of the United States, responsible for ensuring economic stability? It regulates monetary policy, adjusting interest rates and controlling inflation to balance economic growth. The Fed supervises and regulates banks to maintain financial security and consumer confidence. Through open market operations, it buys and sells government securities to control money supply and liquidity. It also acts as a lender of last resort, providing financial assistance to banks during crises to prevent economic collapse. The Fed’s primary goals include price stability, maximum employment, and moderate long-term interest rates. It plays a crucial role in maintaining financial stability, ensuring efficient payment systems, and supporting economic growth. By influencing borrowing costs and credit availability, the Fed significantly impacts industries such as housing, construction, and business investment.
DYK – What Does the US Federal Reserve (The Fed) Do?
