DAILY NEWSLETTER
Your daily dose of Crypto news, Prices & other updates..
The Federal Reserve System is the central monetary body of the United States of America. It is the central bank of the US and is responsible for keeping the US economy in check. It consists of three entities: the Board of Governors, 12 regional Federal Reserve Banks, and the Federal Open Market Committee.
The Board of Governors consists of seven members: the chairperson, vice-chair, and five board members. The current chair of the Fed is Jerome Powell. The 12 regional Federal Reserve Banks are each responsible for specific geographic areas. The 12 regional banks are in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.
The Federal Open Market Committee is responsible for the money supply of the United States and forms monetary policies.
The Federal Reserve Act constituted the Federal Reserves System in 1913. The act, signed by President Woodrow Wilson, aimed to provide economic and monetary stability through a centralized financial institution. It was constituted in response to the bank panic of 1907.
The Federal Open Market Committee of Fed controls the money supply of the country. Moreover, it is responsible for steering the economy during difficult periods such as inflation and recession. It does so through financial mechanisms like Quantitative Easing and Quantitative Tightening. Consequently, this can have a huge impact on the market, including the crypto market.
For example, the US economy is currently dealing with high inflation. Consequently, the Federal Reserve responded with a hawkish stance and quantitative tightening with interest rate hikes. As a result, the crypto markets faced a major bear market.
Share on
DAILY NEWSLETTER
Your daily dose of Crypto news, Prices & other updates..
Top News
Trending Now
Cryptocurrency Prices
Price Predictions
