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The '''Federal Reserve''' (sometimes called "The Fed") is the American [[central bank]] in [[Washington, D.C.]]. It was founded in 1913. It lends [[money]] to other, smaller [[bank]]s. The ''Federal Reserve Board'' is a group of financial leaders who work for the Federal Reserve and decide how much to charge these banks for borrowing money (this charge is called an "[[interest|interest rate]]"). The Federal Reserve interest rate is decided by the Federal Reserve Board after studying the condition of the [[Economy of the United States|U.S. economy]].
{{complex|date=April 2012}}
The '''Federal Reserve''' (sometimes called "The Fed") is a large [[central bank]] in [[Washington, D.C.]] that was founded in 1913. It lends [[money]] to other, smaller [[bank]]s. The ''Federal Reserve Board'' is a group of financial leaders who work for the Federal Reserve and decide how much to charge these banks for borrowing money (this charge is called an "[[interest|interest rate]]"). The Federal Reserve interest rate is decided by the Federal Reserve Board after studying the condition of the [[Economy if the United States|U.S. economy]].


When the economy is growing too fast, the Federal Reserve makes borrowing more expensive by increasing the interest rate, which means people and companies spend less, which discourages [[inflation]]. When economic growth slows, the interest rate is decreased so that borrowing will increase and there will be growth.
When the economy is growing too fast, the Federal Reserve makes borrowing more expensive by increasing the interest rate, which means people and companies spend less, which discourages [[inflation]]. When economic growth slows, the interest rate is decreased so that borrowing will increase and there will be growth.

<gallery>
File:Seal of the United States Federal Reserve System.svg|[[Seal]] of the Federal Reserve System
File:Flag of the United States Federal Reserve.svg|[[Flag]] of the Federal Reserve System
File:Marriner S. Eccles Federal Reserve Board Building.jpg|Eccles Federal Reserve Board Building
</gallery>

==Other websites==
* {{Commons category-inline|Federal Reserve}}
* [https://www.federalreserve.gov/ Official website]


{{Central banks by country}}
{{Central banks by country}}

Latest revision as of 11:56, 17 August 2024

The Federal Reserve (sometimes called "The Fed") is the American central bank in Washington, D.C.. It was founded in 1913. It lends money to other, smaller banks. The Federal Reserve Board is a group of financial leaders who work for the Federal Reserve and decide how much to charge these banks for borrowing money (this charge is called an "interest rate"). The Federal Reserve interest rate is decided by the Federal Reserve Board after studying the condition of the U.S. economy.

When the economy is growing too fast, the Federal Reserve makes borrowing more expensive by increasing the interest rate, which means people and companies spend less, which discourages inflation. When economic growth slows, the interest rate is decreased so that borrowing will increase and there will be growth.

Other websites

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