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What is the Fed?

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So what is the Fed?

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What is the Fed?

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What is the Fed?

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The Federal Reserve
often referred to as

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"the Fed" is the central
bank of the United States.

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Congress created the Fed in
1913 to help promote a safe

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and sound monetary and
financial system for our nation.

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The Fed includes the Board of
Governors in Washington D.C.

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which has seven members
including the Chairman

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and Vice Chairman.

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All of the members of the Board
are appointed of the President

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of the United States
and confirmed

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by the United States Senate.

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The Fed also includes 12
regional Federal Reserve Banks

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located in cities
throughout the country.

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The Reserve Banks serve as the
central banks' operating arms

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and also gather economic
information from all

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over the country to help the
Fed both monitor the economy

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and get the broad input
necessary to develop

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and implement effective
U.S. monetary policy.

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Today, the Fed performs a number
of important functions all

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with the ultimate goal

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of promoting a healthy
U.S. economy.

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One of the Fed's more
recognizable functions is

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conducting U.S. monetary policy.

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Which involves influencing
interest rates

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and the availability of money
and credit in our economy.

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Congress has tasked the Fed with
implementing monetary policies

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that promote maximum
employment and stable prices.

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High levels of employment
provide people

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with more economic opportunities

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and stable prices promote
growth, by making it easier

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for households and businesses
to plan for the future.

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Monetary policy decisions
at the Fed are made

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by the Federal Open
Market Committee,

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which includes all seven members
of the Board of Governors

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and presidents from
the reserve banks.

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This committee meets regularly
to assess the conditions

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and outlook for the economy.

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In addition to conducting
monetary policy,

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the Federal Reserve
also helps to supervise

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and regulate the
nation's banks and works

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to promote a stable financial
system for consumers,

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communities, and businesses.

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The Fed also works
with communities,

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non-profit organizations,
and others across the nation

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to address housing problems,
promote equal access to credit,

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and advance economic and
community development.

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The Fed also promotes stability
in the financial system

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because instability

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in the financial system
can pose a severe threat

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to the broader economy and
communities across the nation.

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The Fed also acts as a bank to
other banks by clearing checks,

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making electronic payments,
and providing the currency

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that American's need
and use every day.

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Our nation's economy

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and financial system
face constant challenges.

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The Fed is working every day
to address those challenges

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and is committed to helping
foster good economic conditions

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and outcomes, employment
opportunities, stable prices,

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and financial stability
that benefit all Americans.

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And we are also the Fed.

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To learn more about
the Federal Reserve,

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you'll find a wide range
of resources on the Board

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of Governors website
at Federalreserve.gov.