Federal Reserve

-Federal Reserve System-

Its every move is affecting the global economy.

what is the federal reserve?

Before talking about the Fed's interest rate hike, let's learn about the historical background of the Fed.

The M-nation Federal Reserve System, known as the Federal Reserve, was established in 1913 with a history of nearly 11 years. It is responsible for performing the duties of the central bank of country M. In other words, it is the decision-making body of currency issuance in country M, which is the decider of US dollar issuance policy and determines the interest rate and circulation of US dollars. By adjusting the federal funds rate, that is, raising interest rates or lowering interest rates, the Fed controls the economy of the whole country.

why do people pay so much attention to it?

friends who are engaged in finance can't predict the future economic trend without an institution, that is, the Federal Reserve. Its every move, every word and deed will attract the attention and heated discussion all over the world.

This is because country M occupies a special place in the global economy, and the US dollar is also the most important currency in the world.

At present, 95% of international commodities are denominated in US dollars, 86.5% of international trade is settled in US dollars, and 61% of international reserves are assets in US dollars. Therefore, the US dollar is the anchor of global reserves and currencies, and the Federal Reserve is in charge of the issuance of this currency.

who controls the federal reserve?

The central banks of most countries in the world are state-owned banks and one of the ZF institutions. The name is also the central bank. Why is the central bank of M called the Federal Reserve? People have been talking about the real story of the Federal Reserve.

most banks in western countries are private banks. In the early years, for their own private interests, banks often planned limited activities. They manipulated the financial and economic markets and even interfered in the manipulation of politics. In order to avoid misunderstanding and association with the central bank, country M came up with an institution name that is different from the bank name but related to banking business, called the Federal Reserve.

It is reported that the Federal Reserve is not a part of the government, and it is politically independent from the White House. The Federal Reserve does not accept appropriations from Congress, and is financially independent from Congress. However, in terms of functions, the Federal Reserve is similar to a government agency. This proves that M capitalists are both businessmen and officials, and they are both contestants and referees.