The
Federal Reserve,
sometimes known as the Fed, is the central bank of the U.S. While the Fed plays many roles in the economy, its ultimate goal is to achieve sustained, robust economic growth and full employment through regulation of the money supply. If the Fed believes the pace of growth is so rapid that it will lead to high inflation, it reduces the money supply. When growth slows, the Fed loosens the money supply.
The Fed’s actions can have a direct impact on your personal finances, since the interest you earn on deposits or pay on loans is directly linked to Fed monetary policy. The Fed’s decisions may also affect your portfolio, since a tighter money supply may depress stock prices, but make bond and cash investments more attractive, and vice versa. Learn how the Fed influences the economy — and affects you.
The central bank of the U.S. helps keep the economy healthy and the currency stable. Learn how the Fed’s actions can shape the economy, the markets, and your portfolio.
