Federal Reserve System
America's central bank
The Federal Reserve System is the central banking system of the United States, established in 1913 to regulate monetary policy, supervise banks, and maintain financial stability.
Often called simply the Fed, it sets interest rates, controls the money supply, and acts as lender of last resort during financial crises.
The system comprises twelve regional Federal Reserve Banks overseen by the Board of Governors in Washington.
National currency management institution
- lendingTemporary provision of resources
- depositsMaterial settled or stored
- clearingTreeless space in forest
- settlementResolved dispute or colony
Price paid for borrowing
- discount rateInterest on Fed loans
- quantitative easingAsset purchases to boost economy
- tighteningMaking less loose
- easingReducing strain or difficulty
Sustained price level increase
- unemploymentBeing without paid work
- price stabilityConsistent general price levels
- GDPNational output abbreviation
- recessionProlonged economic decline
expansion · business cycle · economic indicators · consumer spending · labor market · macroeconomic · soft landing · overheating
Sound economic standing
- crisis managementHandling urgent threatening situations
- bailoutEmergency aid preventing bankruptcy
- too big to failRequiring rescue due to scale
- contagionDisease spread by contact
One who leads meetings
- regional banksGeographically limited financial institutions
- independenceFreedom from external control
- congressional oversightLegislature monitoring executive branch
- transparencyState of being see-through
accountability · nomination · confirmation · term limits · voting members · policy statement · meeting minutes · testimony
central bank
National currency management institution
- lendingTemporary provision of resources
- depositsMaterial settled or stored
- clearingTreeless space in forest
settlement · capital requirements · stress tests · lender of last resort
interest rates
Price paid for borrowing
- discount rateInterest on Fed loans
- quantitative easingAsset purchases to boost economy
- tighteningMaking less loose
easing · rate cut · money supply · yield curve · tapering
inflation
Sustained price level increase
- unemploymentBeing without paid work
- price stabilityConsistent general price levels
- GDPNational output abbreviation
recession · expansion · business cycle · economic indicators · consumer spending · labor market · macroeconomic · soft landing · overheating · stagflation
financial stability
Sound economic standing
- crisis managementHandling urgent threatening situations
- bailoutEmergency aid preventing bankruptcy
- too big to failRequiring rescue due to scale
chairperson
One who leads meetings
- regional banksGeographically limited financial institutions
- independenceFreedom from external control
- congressional oversightLegislature monitoring executive branch
transparency · accountability · nomination · confirmation · term limits · voting members · policy statement · meeting minutes · testimony · Janet Yellen
Federal Reserve Systemcommercial bank
Deposit and loan institution
private bank · retail bank · loan shark · investment bank · payday lender
Federal Reserve SystemAustrian economics
Subjectivist, individualist economic tradition
anarcho-capitalism · laissez-faire economics · gold bugs · Ron Paul · spontaneous order
federal, reserve, system, federation, federate, federated, federalism, federalist, confederate