What Is The Fed?
The Fed is short for the Federal Reserve System, which is the central bank of the United States. Before The Fed was established, the United States often faced financial crises due to a lack of oversight of the banking system. To address this issue, the government created the Federal Reserve System through the Federal Reserve Act in 1913.
The Fed is designed as an independent institution, meaning its operations are not directly controlled by the government or the president. Decisions made by The Fed are based on economic data and aim to maintain long-term stability.
The Fed has the primary responsibility to maintain the economic stability of the country through the regulation of monetary policy, banking supervision, and the maintenance of a safe and efficient financial system.
As one of the most influential financial institutions in the world, The Fed's decisions are often under global scrutiny as they can affect exchange rates, interest rates, and asset markets such as stocks and cryptocurrencies.
