Federal Reserve
a.k.a. The Fed
The central bank of the United States, which sets US interest rates and oversees much of its banking system.
In plain English
The central bank of the United States, which sets US interest rates and oversees much of its banking system.
The Federal Reserve was created in 1913. It has a dual mandate from Congress: stable prices and maximum employment. It is made up of a Board of Governors in Washington and twelve regional Federal Reserve Banks.
Because the dollar sits on one side of most forex trades, the Fed is the most influential central bank on the planet. A change in its tone can move every currency pair at once.
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