Executive Summary The Federal Reserve System (the Fed) manages the U.S. money supply and monetary policy to ensure economic stability. Key functions include setting reserve ratios, adjusting the discount rate, and conducting open-market operations. These actions impact interest rates, inflation, and employment. The Fed operates independently but faces political influences. Key Points from the University of Delaware Overview Structure and Independence: The Fed is composed of a Board of Governors, Federal Reserve Banks, and the Federal Open Market Committee (FOMC). While it operates independently from Congress, its decisions can be influenced by political and economic considerations. This structure is designed to balance independence with accountability but also leads to potential… Read More
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