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.
L&T Finance Holding sees consolidation in NBFC space post RBI norms on liquidity coverage ratio
The Reserve Bank of India (RBI) has released a draft circular on liquidity risk management for non-banking financial companies (NBFCs) in the ...
>> Read more here
Aerial Combat: United Airlines Ejects Avianca Chairman Efromovich, Replaces Him With Arch ...
When contacted late Friday, a United Airlines spokesperson told Finance Colombia 'While Avianca will remain an independent company and continue ...
>> Read more here
TRIBUNE: Legislature agrees on school finance, property taxes, more
Texas House, Senate agree on school finance, property taxes, Hurricane Harvey recovery. The Texas Legislature on Sunday advanced a $250.7 ...
>> Read more here
Guido: Both partners should watch household finances
One of the toughest jobs for any wealth professional is meeting with a surviving spouse about finances he or she hasn't been at all involved in for the ...
>> Read more here
Re-create Kate Middleton's backyard on a finances
DO YOU remember your childhood garden' Was it anything like the garden designed by Davies White landscape architects and the Duchess of ...
>> Read more here
Send Money Overseas
China does not like money flowing out of the country. Despite what you may think, there is only ONE totally legal way for expats to send large sums of ...
>> Read more here
Lawyer to sail from Kittery to Lubec to raise money for cancer care
In July, Silverstein will sail the 16-foot kayak with two hulls more than 250 miles from Kittery to Lubec to raise money for cancer research and treatment ...
>> Read more here
Help Karen raise money for participating in SRRA RIVER RUN
Karen is raising money for a great cause by participating in SRRA RIVER RUN on September 29, 2019. They need your help to reach their goal.
>> Read more here
Tricky ways real estate agents get you to spend more money
Looking for a new property to buy or rent can be an exhausting experience. Having a trusted real estate agent by your side can help substantially, but ...
>> Read more here
