πŸ’₯πŸ”₯πŸ’²What is the Federal Reserve System? πŸ’₯πŸ”₯πŸ’² (We try to cover every aspect of market that impacts your trading journey http://fe…

πŸ’₯πŸ”₯πŸ’²What is the Federal Reserve System? πŸ’₯πŸ”₯πŸ’²

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The Federal Reserve is the centrally backed banking system of the United States of America and was established with the enactment of the Federal Reserve Act in 1913. The Fed, as it is more colloquially referred to, was created with two major goals in mind, namely the dual mandate, which are to maximize employment among the public, reduce inflation and stabilize prices.

Along with the other major tasks of regulating all other banks and also handling the government’s treasury, the Federal Reserve is the central banking institution of the United States.

=> Activities undertaken by the Federal Reserve System

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1. Monetary policy
The chairman of the Fed, along with his board of advisors, in conjunction with the President, enact all monetary policies, which must always be geared toward improving the quality of life of the average American citizen, reducing long-term interest rates, reducing debt, and increase lending.

2. Stability and risk mitigation
The Fed monitors all systemic risk possibilities and assesses strategies to minimize the chances of total economic collapse or recessions. They have executive power in many cases for short-term decisions and bailout appeals.

3. Regulation
The Fed is involved in active monitoring of the activities of banks and individuals as well, in certain cases. It keeps them in check whenever needed with inquiries, sanctions, and in the most extreme cases, fines.

4. Payments, depositories, bonds
The Fed offers investment opportunities for banking institutions and individuals who wish to invest in government-backed bonds. They facilitate most of the electronic as well as paper transactions and, are involved with the Mint in regulating currency production as well.

5. Consumer protection
The ability to take up consumer cases and create consumer-oriented rules and community-building activities the Fed is some of the lesser-known functions of the Fed. The Fed actively undertakes research projects to identify consumer grievances.

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