The Federal Reserve: The Central Bank of the United States

💼The Federal Reserve acts as a banking institution for commercial banks and a way for the government to influence financial activity.

💰The main goal of the Federal Reserve Act was to stabilize the country's currency and implement various policies for individual private banks.

🏦The Federal Reserve regulates monetary policy with the primary goals of maximum sustainable employment, stable prices, and moderate long-term interest rates.

💵Price stability is a key focus of the Federal Reserve, aiming for little inflation or deflation over time.

🔍The Federal Reserve oversees and regulates banks, aiming for maximum stability and consumer confidence in commercial banking.

What is the main purpose of the Federal Reserve?

—The main purpose of the Federal Reserve is to regulate monetary policy and ensure maximum sustainable employment, stable prices, and moderate long-term interest rates.

What are the responsibilities of the Federal Reserve?

—The Federal Reserve acts as a banking institution for commercial banks, influences financial activity, oversees and regulates banks, and stabilizes the country's currency.

What is price stability?

—Price stability refers to a state in which prices do not change much over time, with little inflation or deflation.

What is the role of the Federal Open Market Committee?

—The Federal Open Market Committee is responsible for determining the vision and direction of monetary policy, including interest rates.

How is the Federal Reserve governed?

—The Federal Reserve is governed by its Board of Governors, consisting of seven members appointed by the President of the United States and confirmed by the US Senate. The Chair of the Board of Governors leads the Federal Reserve.

00:05The Federal Reserve is the central bank of the United States, serving as a banking institution for commercial banks and a way for the government to influence financial activity.

00:24The main goal of the Federal Reserve Act, established in 1913, was to stabilize the country's currency and implement policies for individual private banks.

00:43The Federal Reserve regulates monetary policy with the aims of maximum sustainable employment, stable prices, and moderate long-term interest rates.

00:55Price stability is a key focus of the Federal Reserve, aiming for little inflation or deflation over time.

01:19The Federal Reserve oversees and regulates banks, aiming for maximum stability and consumer confidence in commercial banking.

02:26The Federal Reserve is governed by its Board of Governors, consisting of seven members appointed by the President and confirmed by the US Senate.

02:54The Federal Reserve has twelve regional banks and is overseen by the Federal Open Market Committee, responsible for determining monetary policies.

03:10The Federal Reserve's main role is to regulate monetary policy, stabilize the country's currency, and oversee the banking system.