Financial Institution
Federal Reserve System Federal Reserve
The Federal Reserve is the central bank of the United States, responsible for monetary policy that impacts interest rates, inflation, and overall market conditions.
Key Facts
- • Created in 1913 with the Federal Reserve Act
- • Consists of 12 regional Federal Reserve Banks and the Board of Governors in Washington DC
- • Primary monetary policy tools include the federal funds rate and quantitative easing
- • Interest rate decisions have major impacts on stock, bond, and forex markets