⚠️Today Fed Is going Live

What Is the Fed?

1. Full Name: Federal Reserve System

2. Main Job: Control inflation, keep employment high, and ensure financial stability.

3. Key Tools:

Interest Rates (controls borrowing costs)

Quantitative Easing/Tightening (adds or removes money from markets)

Reserve Requirements (how much banks must hold)

What Does the Fed Do?

Sets Interest Rates: Raises rates to fight inflation, lowers them to boost growth.

Monitors Inflation: Through indicators like CPI (Consumer Price Index).

Supervises Banks: Keeps banks stable and prevents collapse.

Manages Crises: Like in 2008 (financial crash) or 2020 (COVID response).

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💥 Why the Fed Matters for Crypto and Markets

When the Fed raises rates, borrowing becomes expensive → risk assets fall (like crypto, stocks).

When the Fed cuts rates or prints money → more liquidity → crypto and stocks go up.

So when you hear “The Fed is meeting” or “CPI will affect the Fed’s decision,” it’s all