Making Sense of the Federal Reserve

Hi, I’m Penny, your personal tour guide. I’m here to introduce you to one of the most complex but effective institutions in the United States—the Federal Reserve.

vea en español | view in Spanish

What is the Federal Reserve, what does it do and how does the Federal Reserve work? During our tour you’ll learn about:

  • The history of the Federal Reserve and why its independence as the U.S. central bank, and its regional structure, are important.
  • The Fed’s dual mandate of price stability and maximum employment, and how the Federal Reserve implements monetary policy.
  • How the Federal Reserve supervises and regulates banks, and what it does to protect consumers.

From 1996 to 2024, ‘Making Sense of the Federal Reserve’ was called ‘In Plain English: Making Sense of the Federal Reserve.’

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