HowStuffWorks "How the Fed Works"
[http://www.howstuffworks.com/] SUBSCRIBE Adventure Animals Auto Culture Entertainment Health Home & Garden Lifestyle Money Science Tech Video Shows Quizzes Business Economics Jobs Personal Finance Home / Money / Economics / Economic Concepts How the Fed Works by Lee Ann Obringer Page 1 Introduction to How the Fed Works 2 Why do we need the Fed? 3 Inflation 4 Recession Washington, D.C. Washington, D.C. Image Gallery Federal Reserve building, Washington, D.C. See more Washington, D.C. pictures . Next Up Is a free market "free" if it's regulated? Why does the Fed change the interest rate? One of the more mysterious areas of the economy is the role of the Fed. Formally known as the Federal Reserve , the Fed is the gatekeeper of the U.S. economy. It is the central bank of the United States -- it is the bank of banks and the bank of the U.S. government . The Fed regulates financial institutions, manages the nation's money and influences the economy. By raising and lowering interest rates, creating money and using a few other tricks, the Fed can either stimulate or slow down the economy. This manipulation helps maintain low inflation, high employment rates, and manufacturing output. In this article, we'll visit the mystical world of the Fed and talk about terms like monetary policy, discount rates, and open market operation. We'll find out just what kinds of tasks fill Ben S. Bernanke's day, and see how his and the Federal Reserve Board's decisions affect our everyday lives. Print Cite This! Close Please copy/paste the following text to properly cite this HowStuffWorks article: Obringer, Lee Ann. "How the Fed Works" 02 May 2002. HowStuffWorks.com.
17 August 2014. Citation & Date Feedback Page 1 Introduction to How the Fed Works 2 Why do we need the Fed? 3 Inflation 4 Recession 5 Fed Tasks 6 Fed Tasks: Monetary Policy 7 Fed Tasks: Financial Institution Regulator 8 Fed Tasks: The Government's Bank More To Explore Money Makes the World Go 'Round 10 Things You Should Buy in Bulk Fact or Fiction: Hidden Bank Fees 10 Recession-proof Businesses 10 Most Stressful Jobs in America Quiz: Building Your Nest Egg Watch retirement videos » You Might Also Like How Pyramid Schemes Work Here's a great investment opportunity: All you have to do is get five friends to sign up. When they pay to join in, you get paid. Sound too good to be true? How Volunteer Police Work If you're interested in taking your curiosity about "CSI" and criminal justice to the next level, you don't have to make a complete career change. You can volunteer at your local police station. Popular Articles What if I removed the tag from my mattress? Do Something Spotlight: Daniel Kent and Senior Connects How Fair Trade Works Most Popular Most Watched Most Popular 10 Great Reasons to Change Jobs How do CDs (certificates of deposit) work? 10 Quick Ways to Make Money Eye On the Money: Test Your Debt Knowledge 10 Tips for Staying on Budget Most Watched Stocks and the Stock Market Credit Card Videos How to Make Millions Frugal Living Saving Money Don't Miss Stuff You Should Know: Demystifying Your World Stuff Mom Never Told You: All Things Women and Gender Stuff You Missed in History Class: Fact or Fiction? CHECK OUT OUR PODCASTS HOWSTUFFWORKS NEWSLETTER THE LATEST AND GREATEST SUBSCRIBE HOWSTUFFWORKS Adventure Animals Auto Culture Entertainment Health Home & Garden Lifestyle Money Science Tech MORE STUFF Blogs HSW Tools RSS Maps Podcasts Quizzes Newsletters Video HSW Brazil HSW China STUFF WEBSITES BrainStuff CarStuff Fw:Thinking Stuff Mom Never Told You Stuff of Genius Stuff They Don't Want You to Know Stuff to Blow Your Mind Stuff You Missed in History Class Stuff You Should Know CUSTOMER SERVICE Advertising Contact Us Help CORPORATE About Us Careers @ HSW Privacy Policy Visitor Agreement TAKE US WITH YOU FOLLOW US Copyright © 1998-2014 HowStuffWorks, a division of InfoSpace LLC