WHAT IS THE FED

WHAT IS THE FED?

The Federal Reserve, commonly referred to as the "Fed", is the central banking system of the United States. Established in 1913, its stated mission is to provide the country with a safer, more flexible, and stable monetary and financial system. The Fed controls the supply of money, sets interest rates, and serves as a lender of last resort to banks. It operates independently of the government, meaning its decisions do not require approval from the President or Congress, which gives it significant power over the U.S. economy. However, the Fed's policies have led to numerous negative consequences, such as inflation, economic bubbles, and increasing wealth inequality. Critics argue that the Fed's manipulation of the money supply and interest rates distorts the economy and undermines individual financial freedom.

WHAT IS THE FEDERAL RESERVE?

The Federal Reserve, commonly referred to as the "Fed", is the central banking system of the United States. Established in 1913, its stated mission is to provide the country with a safer, more flexible, and stable monetary and financial system. The Fed controls the supply of money, sets interest rates, and serves as a lender of last resort to banks. It operates independently of the government, meaning its decisions do not require approval from the President or Congress, which gives it significant power over the U.S. economy. However, the Fed's policies have led to numerous negative consequences, such as inflation, economic bubbles, and increasing wealth inequality. Critics argue that the Fed's manipulation of the money supply and interest rates distorts the economy and undermines individual financial freedom.