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.
- Oversee the country’s money supply
- Regulate banks and protect the credit rights of consumers
- Maintain the stability of the financial system
- 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)
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).