Federal Reserve

12 banks that make money

The federal reserve “The fed”

• Board of Governors

• appointed by the president

• confirmed by senate

• made of 12 regional banks

• gather econ info from all around the country

• to help format and implement policy

• monetary policy

• influencing interest rates

raising interest rates in “the fed” makes banks raise interest rates which slows the amount of money people want to spend

lowering reserve requirement raises the amount of money banks can give out

Open market operations -

The federal reserve can buy stuff from you now they give you cash and you buy stuff to stimulate the economy

sell treasury bills to get money if money is low and buy them to stimulate the economy

Monetary policy - fed reserve