The Banks’ Bank: The Federal Reserve
In This Chapter
• The function of the Federal Reserve
• Key operating units of the Fed
• How the Fed influences the money supply
• How the Fed works with the banking system
You’ve probably heard of the Federal Reserve System before reading this book. The business news and even the general news regularly report on decisions the Fed makes regarding interest rates and the banking system, particularly during difficult economic times.
The Federal Reserve is so important to the economy that there’s a whole cottage industry of Fed watchers within the business community. They monitor the Fed’s moves, try to fathom the chairman’s thinking, and develop forecasts of interest rates, money supply aggregates ...