The Federal Reserve Explained in 10 Minutes

The Federal Reserve system is one of the largest institutions in the entire world and has a huge impact on the macroeconomics all around us. Many people who are keeping up with this economy probably hear about the Federal Reserve pretty often but they might not fully understand what the Fed even is or what they do. I wanted to take the time to quickly explain what the Federal Reserve is, what they do, and how they have an impact on all of us. I also took the time to recap on what the Federal Reserve has done since the onset of the Coronavirus. We all have been living in strange times the past couple years with this economy and the Federal Reserve plays a big role when it comes to the condition of the economy. The Federal Reserve conducts the monetary policy for the nation which means they control how much money is in an economy and how new money is supplied. The Fed also maintains things like inflation and unemployment which obviously has an affect on all of us. The Fed also plays a significant role on investors as their decisions has big impacts on the economy. It is important to understand what the Federal Reserve is and the tools they use to keep the economy stable so we know how they affect us.

I do my best to breakdown what the Federal Reserve is in 10 minutes by discussing why the Central Bank was created, how it is structured, and their processes. I cover things like the Federal Fund Rate, Quantitative Easing, Tapering, and tightening and loosening of monetary policy.

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