#FedHODL
The US Central Bank (Federal Reserve)
The Federal Reserve is the central bank of the United States of America, responsible for monetary policy in the country. Also known as the "Federal" or "Fed", it was established in 1913 under the Federal Reserve Act to protect the US economy from financial crises and ensure monetary stability.
The main tasks of the Federal Reserve:
1. Regulating monetary policy: by setting interest rates and controlling the money supply to achieve price stability and economic growth.
2. Supervising banks: to ensure the stability of the banking sector and reduce financial risks.
3. Achieving full employment: through policies that encourage job creation and economic growth.
4. Ensuring the stability of financial markets: by intervening in crises such as the 2008 financial crisis and the Corona pandemic.
5. Managing inflation: Targeting an inflation rate of about 2% annually to achieve economic balance.
The Federal Reserve's tools in monetary policy:
The federal interest rate: affects loans and credit in the economy.
Open Market Operations: Buying and selling government bonds to control liquidity.
Reserve Ratio: Determines the minimum amount of money that banks must hold.
Current Fed Chairman:
The Fed Chairman is appointed for a 4-year term by the President
