To put it simply, raising interest rates is a tight monetary policy, and the Fed responds to the current economy by raising interest rates. Generally, raising interest rates can increase bank interest, thus reducing the money supply, and the dollar will appreciate. In addition, higher interest rates will have an impact on the economy. For example, after the appreciation of the dollar, the price of gold will fall, and everyone is more willing to hold dollars; The currencies of other countries will depreciate and so on.
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The Federal Reserve System, the Federal Reserve, is the private central bank of the United States? [15], responsible for performing the duties of the central bank of the United States. The system was established on 19 13 12/23 according to the Federal Reserve Act. The core management body of the Federal Reserve is the Federal Reserve Board of Directors. ? [ 1]?
The United States Federal Reserve System consists of the Federal Reserve Board in Washington, D.C. and 65,438+02 regional federal reserve banks in major cities of China. Jerome Powell is currently the CEO of the Federal Reserve (Chairman of the Board of Directors of the Federal Reserve). As the central bank of the United States, the Federal Reserve obtains power from the United States Congress, and exercises duties such as formulating monetary policy and supervising American financial institutions.
The Federal Reserve is the largest holder of US federal debt. This is a strict secret for shareholders. [16] In 2020, the Fed's net profit reached $88.8 billion.