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Fed
(Federal Reserve System)
The Fed (Federal Reserve) is the U.S. central bank, overseeing monetary policy (via FOMC), bank regulation, and financial stability. Divided into 12 regional banks and a Washington-based Board of Governors.
Dual mandate: maximize employment and stabilize prices (target 2% CPI inflation). Tools include interest rates (federal funds rate), QE, and reserve requirements. The Fed's 2022-2023 rate hikes (0% → 5.5%) aimed to curb inflation but raised recession risks. Chairs like Powell and Bernanke wield global influence—the ECB and BoE often follow Fed policy shifts. Controversies include 2008 bailouts and slow responses to inflation.
Dual mandate: maximize employment and stabilize prices (target 2% CPI inflation). Tools include interest rates (federal funds rate), QE, and reserve requirements. The Fed's 2022-2023 rate hikes (0% → 5.5%) aimed to curb inflation but raised recession risks. Chairs like Powell and Bernanke wield global influence—the ECB and BoE often follow Fed policy shifts. Controversies include 2008 bailouts and slow responses to inflation.