Something The Fed, short for the federal reserve is the central bank of the United States. The federal reserve plays a huge role in the lives of Americans. The federal reserve is also responsible for overseeing the banking system, controlling the amount of money in the economy, and most importantly controlling the interest rates. The federal system is compromised of four separate branches. The Board of Governor, 12 regional banks, the Federal Open Market Committee or (FOMC), 12 regional banks and member banks. The fed also handles “Monetary Policy”. Monetary policy influences the interest rate which plays a key role in how the economy functions. When interest rates are high, borrowing becomes to expensive, when interest rates are low, people
