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What is the Federal Reserve?

The Federal Reserve

The Central Bank of the U.S aka “The FED”.

  • Studies economic trends
  • Make decisions to help the economy work better

Main job is to keep the U.S. economy and currency stable.


  1. Oversee the country’s money supply
  2. Regulate banks and protect the credit rights of consumers
  3. Maintain the stability of the financial system
  4. Provide financial services to the U.S government

How It Does This

  • Raising and lowering interest rates
  • Creating money

How The FED Creates Money

  • Currency – printing bills or minting coins
  • Federal Reserves – buying securities (treasury bills, notes, bonds)

Fun Facts

Former Fed Chairman Alan Greenspan has a poorly veiled tic in his right eyebrow, investors said it was an indicator of whether interest rates will go up).

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