The Flow of Money
The Federal Reserve System or central bank of the United States performs essential functions to maintain stability within the underlying economic system. Background information on the services and expertise offered by this national network of 12 regional banks and Board of Governors in Washington, D.C., can be found on https://www.federalreserve.gov/aboutthefed.htm. To summarize, the Federal Reserve’s role, in general, includes the following:
Develop monetary policy to maximize employment, price stability, and control or moderate long-term interest rates
Stabilizes the financial system while monitoring potential risks domestically and abroad
Monitors the effects and conditions of individual financial institutions
Ensure safe and efficient settlement systems by servicing the banking industry to facilitate dollar-based transactions
Consumer and community-focused economic development, consumer-based research and trend analysis, and consumer laws and regulation administration, among other activities
As a separate government entity, the Federal Reserve System maintains its independence from political influences arising in the short-term. To supplement and provide flavor to national business-related news reports on key trends and indicators, Federal Reserve Bank Economic Commentaries uncover an additional, region-based layer of meaning and context to economic trends and analysis.