10 Ways the Fed Shapes Your Financial Future
The Federal Reserve is the central bank of the United States that oversees monetary policy.
It has a dual mandate to promote maximum employment and stable prices.
The Fed sets key interest rates that impact borrowing costs throughout the economy.
Lower interest rates make it cheaper for consumers and businesses to borrow money.
The Fed also influences money supply through open market operations like buying/selling securities.
More money in circulation typically leads to economic growth but also risks higher inflation.
The Fed impacts the value of the US dollar globally through interest rate changes.
A strong dollar makes imported goods cheaper for Americans but US exports more expensive.
The Fed regulates banks to maintain the stability of the financial system.
Fed policies impact your bank account interest rates, credit card rates, mortgage rates and more.