We are all familiar with the Fed (not to be confused with Roger Federer), but do you really know what it is, what it does, and how it functions?
Q: What is Federal Reserve System
A: The Federal Reserve is the central bank for the United States. It is composed of 12 regional Federal Reserve Banks located around the country as well as the Board of Governors, the independent government agency, in Washington D.C. A 12 member board is selected from these entities to create the Federal Open Market Committee (FOMC). The Federal Reserve controls the country’s monetary policy with the dual mandate of stable prices and full employment with the goal of sustainable economic growth. Monetary policy is concerned with the amount of money and credit in the economy. The Federal Reserve is also in charge of regulating banks and other economically important institutions to protect depositors and ensure the safety of the financial system.