Federal Reserve

System of federal banks, charged with regulating the US money supply, mainly by

  1. buying and selling US securities; and
  2. setting the discount interest rate.

In particular, the Fed is known for watching for threatened inflation, and fighting it off by raising the discount rate and decreasing the money supply.

Website: www.federalreserve.gov

home  |  glossary  |  calculator  |  about us  |  books