The Federal Reserve System‍ ( ‌also known as the Federal Reserve or the Fed) ‌is the central bank of the United States of America. It was created on December 23, 1913. It has 3 key objectives by controlling the monetary policy: maximizing employment, stabilizing prices, and moderating long-term interest rates. In other words, the Fed's job is to foster a sound banking system and a healthy economy. To accomplish its mission, the Fed serves as the banker's bank, the government's bank, the regulator of financial institutions and as the nation's money manager. The Fed conducts research into the economy and releases numerous financial publications.

The term monetary policy refers to the actions that the Federal Reserve undertakes to influence the amount of money and credit in the U.S. economy. Changes to the amount of money and credit affect interest rates (the cost of credit) and the performance of the U.S. economy. To state this concept simply, if the cost of credit is reduced, more people and firms will borrow money and the economy will heat up.

The Federal Reserve System implements monetary policy largely by targeting the federal funds rate. This is the interest rate that banks charge each other for overnight loans of federal funds, which are the reserves held by banks at the Fed. This rate is actually determined by the market and is not explicitly mandated by the Fed. It has more power and influence on financial markets than any government institution. Its monetary policies are closely observed and often become a strong influence in many other countries that follow the Fed's policy changes.

Latest news on The Fed & the Economy

IMF says US, China debt pose risks for global public finances - The Business Times
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US nods to 'serious' Japan, S.Korea concerns over slumping currencies | Reuters
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Wisconsin Policy Forum Finds State's Finances Strongest on Record - WORT-FM 89.9
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IMF says US, China debt pose risks for global public finances - The Irish Times
Fund's latest fiscal monitor projects public debt in both countries under current policies to nearly double by 2053.
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Why the 'YOLO' Approach to Personal Finances Is Better Than This Other Idea
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ECB's Lagarde: It's obvious that forex moves may have an impact on inflation
ECB'S LAGARDE:IT'S OBVIOUS THAT FOREX MOVES MAY HAVE AN IMPACT ON INFLATION ECB'S PRESIDENT LAGARDE: WE MONITOR THE EXCHANGE RATE.
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US Dollar Forecast: EUR/USD Recovers Ahead of November Low - FOREX.com
In turn, the update to the US Personal Consumption Expenditure (PCE) Price index may sway foreign exchange markets as the Fed remains reluctant to ...
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Japan, Korea, US Agree Forex Cooperation As Yen, Won Dive - Asia Financial
Finance chiefs from the United States, Japan and South Korea have agreed to 'consult closely' on foreign exchange markets, amid worrying declines ...
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FOREX-US dollar weakens as market consolidates gains, but uptrend intact
FOREX-US dollar weakens as market consolidates gains, but uptrend intact. Herbert Lash and Gertrude Chavez-Dreyfuss. Wed, Apr 17, 2024, 3:34 PM EDT ...
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Forex Today: The Dollar's pause allowed some respite in the risk complex - FXStreet
The Greenback saw its recent rally run out of steam, prompting a corrective move in the USD Index (DXY) and some recovery in the risk-linked ...
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