The Federal Reserve Bank

what does the federal reserve banking system do?

helps keep economy running smoothly, determines interest rates which affects how much people can spend

Jerome Powell

Chair of the Board of Governors of the Federal Reserve.

• FOMC meets 8 times a year

FOMC

Federal Open Market Committee

• deliberates on nations interest rates and other policys

• sets rates for borrowing

How does Fed decide on interest rates

analyze inflation, employment, economic growth, and financial market conditions

• their goal is to balance inflation control with economic stability

3 things that happen after meetings

• stays the same

• raise rates

• lower rates

Fed decisions influence

• mortgage rates

• credit card and auto loans

• business borrowing costs

Higher rates=

borrowing slows

lower rates=

borrowing increases