You've learned a lot about the "Fed", or Federal Reserve. But who are they really?

Let’s find out 💪

After a 1907 banking crisis, Congress created the Fed in 1913 to build a safer financial system and better regulate banks 💵

The Fed’s responsibilities include...

1️⃣ Trying to control inflation by adjusting interest rates and the money supply. 🎈

2️⃣ Working to maintain financial stability.

They monitor banks to ensure they meet regulations and to stop any impending crises, like a watchdog! 🐶👀

3️⃣ Promoting maximum employment, or aiming for an economy where anyone who wants a job can find one.

They achieve this by adjusting interest rates 🧑‍💼

4️⃣ Influencing money supply.

They buy and sell government securities (like bonds) to control how much money is in the economy 💰

All of the things the Fed has influence over affect economic growth.

When interest rates go up, it becomes more expensive to borrow money, which slows economic growth.

On the flip side, lower rates encourage more borrowing and spending, which can boost the economy. 🚀