Summary List Placement
There’s a bank, and then there’s the bank.
The Federal Reserve, or “the Fed,” is the central banking system of the United States, and just about everything it carries out influences your financial decisions and opportunities more than you may realize.
An independent federal agency, the Fed was established in 1913 in response to a series of bank failures and stock market panics that were causing growing unease with the US’ largely unregulated financial system.
By creating a central bank, the government hoped to provide a stable yet flexible authority that could manage the nation’s monetary policy, regulate its financial institutions, and instill confidence in the US economy.
Here’s what you need to know about the Fed, and how it affects you and your money.
What does the Federal Reserve do?
The Fed’s mission is the same now as it was when it was established: To serve the public interest and provide the country with a safe and stable financial system. The Federal Reserve’s main responsibilities include:
Managing the nation’s money and money supply
Maintaining banking payment and transaction systems
Creating and monitoring rules for banks and financial systems
Ensuring that banks are offering quality products and following consumer protection laws
Setting certain key interest rates
By overseeing the nation’s …read more
Source:: Businessinsider – Finance