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The Federal Reserve is the central bank of the United States, responsible for managing the nation's money supply and financial system.
In Depth
Often called "the Fed," the Federal Reserve acts as the banker for the U.S. government and oversees commercial banks. Its main goals are to keep prices stable, maximize employment, and ensure moderate long-term interest rates. The Fed influences the economy by setting interest rates, buying and selling government bonds, and regulating banks. These actions impact everything from mortgage rates to business loans.
Example
The Federal Reserve raised interest rates to help slow down inflation.