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

GBP/USD Price Forecast - GBP at 1.3556 Targets 1.3680'1.3788 as Fed Cuts Diverge From BoE
GBP/USD Price Forecast - GBP at 1.3556 Holds Firm as Fed Cuts Fuel Bullish Pound Outlook. Stalled UK GDP, sticky 3.7% inflation, and Fed easing bets ...
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USD/CAD at Risk: Fed, BoC Rate Cuts and Bearish Head-and-Shoulders Signal Market Shift
A looming head-and-shoulders reversal in USD/CAD highlights the impact of synchronized Fed and BoC easing on currency markets.
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EUR/USD steadies as Fed rate cut bets firm amidst US labor market concerns - RFB NEWS
Given the backdrop, the EUR/USD bias is tilted to the upside as the interest rate differential between the US and Europe will trim. The divergence ...
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USD/CHF Price Forecast: Sellers dominate as pair consolidates below key SMAs - Mitrade
The USD/CHF daily chart shows that price action is poised to test yearly lows. Spot prices remain below the 20 and 50-day Simple Moving Averages (SMAs) ...
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USD/JPY Price at 147.50 ' Political Turmoil and Fed Cuts Target 145.00 - Trading News
Trading News USD/JPY trades at 147.50 as Ishiba's resignation fuels yen weakness. Fed rate cuts loom, keeping range 146.20'149.00 with downside ...
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Canadian Dollar Forecast: USD/CAD Stays Strong as USD Holds Weak - FOREX.com
... USD-strength scenarios, should they appear after the Fed's rate cuts begin. You might ask why the Dollar would rally even as the Fed cuts rates.
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Forex reserves rise to $698.27 bn; gold surge lifts overall reserves; RBI data shows steady recovery
India Business News: India's foreign exchange reserves witnessed a substantial increase of $4.038 billion, reaching $698.268 billion in the week ...
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How to Set Up Alerts in MetaTrader 5 | FOREX.com - YouTube
Welcome, traders! In this video, we'll cover how to set up price alerts in MetaTrader 5 (MT5). Price alerts can help traders monitor key market ...
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Weekly Forex Forecast For DXY, EURUSD, GBPUSD, And XAUUSD (September 15-19, 2025)
In today's Weekly Forex Forecast, I'll share my trade plan for the DXY, EURUSD, GBPUSD, and XAUUSD. We'll talk key levels, bullish and bearish ...
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India's forex rises by $4.03 billion to $698.26 billion, gold reserves jump - tennews.in
New Delhi, Sep 12 (IANS) India's foreign exchange reserves increased by $4.03 billion to touch $698.26 billion for the week ending September 5, ...
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Forex cure worse than the disease' - Trinidad and Tobago Newsday
Well, it's not quite a cure, is it' Central Bank Governor Larry Howai floated the idea of increased exchange rates to dampen forex demand and ...
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