How does the Federal Reserve work?
Known casually as “the Fed,” the century-old independent central bank sets the interest rates determining how much ordinary people pay for mortgages, car loans, and more, all to achieve its dual mandate of price stability and maximum employment (read 101).
After the panic of 1907, major US financiers and lawmakers worked to draft a uniquely American plan for a so-called Federal Reserve system. To avoid public backlash, these efforts were shrouded in secrecy, and in 1913, the Federal Reserve Act was signed into law by President Woodrow Wilson.
The Fed is technically an independent, quasi-governmental agency, meaning it operates without requiring government approval. Its board of governors, led by a chair, must report to Congress.
... Read our full deep dive on the Fed here.
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SOURCE: 1440 NEWS
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