🤝 What is the Fed for beginners.
The Federal Reserve System, or Federal Reserve System, is the central bank of the United States of America.
The Fed's main functions include:
1. Money supply regulation: Controlling the money supply and interest rates to ensure price stability and economic growth.
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2. Supervision and regulation of the banking system: Ensuring the stability and security of the banking system.
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3. Supporting financial stability: Preventing and managing financial crises.
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4. Ensuring the payment system: Ensuring the functioning and improvement of the national payment system.
The Federal Reserve was created in 1913 in response to frequent banking panics to ensure the stability of the country's financial system. The Federal Open Market Committee (FOMC), the key body of the Federal Reserve System, meets eight times a year, approximately every six weeks.
At these meetings, current economic conditions are discussed and decisions about monetary policy are made, such as changes in interest rates and other measures to manage the money supply.
