The Federal Reserve explained – Yahoo News


End the Fed… If you research the US economy over the years, you will learn that the Fed messes up the economy more then it helps. Leaving the Free Market to its own devices will make recoveries from down turns happen quicker and make them safer. The Free Market will adjust to the economic conditions as needed, meaning that sometimes interest rates will be high and sometimes low, but they will be natural highs and natural lows, not made up high and lows that the Fed creates.

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Chair Janet Yellen grabbed everyone’s attention this year when she implied that the Federal Reserve, aka the Fed, may raise interest rates for the first time in six years. The markets have been responding ever since, once again proving that the Fed holds a lot of the cards when it comes to the U.S. economy.

But what exactly is the Fed? And how did it become so powerful?

The government has influence over the economy in two ways. There’s fiscal policy, which is when Congress and the president create legislation on taxes, regulation and government spending.

Then there’s monetary policy, and that’s where the Fed comes in.

via The Federal Reserve explained – Yahoo News.

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