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.
Can the FX industry ride the incoming wave of socially conscious traders' ' Guest Editorial
Both established and growing Forex brokerages have historically focused on getting their name out there for a piece of the pie but now seems to be the ...
>> Read more here
Traders warned not to 'rig' key foreign exchange rates
The global forex market is bigger than any other market, with daily turnover of more than $5 trillion. Benchmark fixings refer to a closing price, or 'fix', set ...
>> Read more here
AUD/USD Forex Technical Analysis ' Strong Upside Momentum Could Trigger Breakout Over .6236
AUD/USD Forex Technical Analysis ' Strong Upside Momentum Could Trigger Breakout Over .6236. Trader reaction to .6097 to .6236 should set the ...
>> Read more here
Top 10 Euro To Dollar Exchange Rate Forecasts: Latest EUR/USD Analyst Outlook, Views And FX ...
Ten Expert Currency Analyst Views and Opinion on Euro Near to Medium-Term Outlook. Shaun Osborne, Chief FX Strategist at Scotiabank. "EUR/USD ...
>> Read more here
Pound to US Dollar Exchange Rate Jumps Back Above 1.24
US Sees Largest Number of COVID-19 Cases, Is the Pound to Dollar Forecast to Go Higher' The latest coronavirus statistics is that the US has the ...
>> Read more here
AUD/USD Forex Technical Analysis ' Strong Upside Momentum Could Trigger Breakout Over .6236
We're looking for a potential acceleration to the upside through .6236 if traders continue to dump U.S. Dollars.
>> Read more here
US dollar posts biggest weekly fall since 2009
NEW YORK (REUTERS) - The US dollar posted its biggest weekly decline in more than a decade on Friday (March 27), as trillions of dollars worth of ...
>> Read more here
