Federal Reserve

From Traderpedia

Definition:
The central banking system of the United States.


Also known as The Fed, it is comprised of a central Board of Governors (located in Washington, D.C.) and twelve regional Federal Reserve Banks located in major cities across the country.

[edit] Role of the Fed

The main points to remember of the Federal Reserve are:

  • Its purpose is to supervise and regulate American fiscal policy.
  • Fed policy is controlled by American banks who sit on the Fed's board, not the American government.
  • Implement Monetary Policy by buying and selling U.S. Treasury Bonds and anything else it deems necessary
  • Maintain a strong payments system


Federal Reserve web site