The U.S. Federal Reserve, the nation's central bank, guides monetary policy to promote maximum employment and stable prices. Often called the Fed, it influences...
The Federal Reserve's primary mission is to conduct monetary policy to achieve maximum employment, stable prices (controlling inflation), and moderate long-term interest rates.
The Fed primarily influences interest rates by setting the federal funds rate target, which affects banks' overnight lending rates and, subsequently, other borrowing costs across the economy.
The FOMC is the monetary policymaking body of the Federal Reserve System. It comprises the seven members of the Board of Governors and five Federal Reserve Bank presidents, and makes key decisions on interest rates.
The Fed contributes to financial stability by supervising and regulating banks, acting as a lender of last resort to financial institutions, and monitoring risks within the broader financial system.
The Chair of the Federal Reserve Board of Governors is a key leader, currently Jerome Powell, responsible for monetary policy and representing the Fed publicly.