What Role Does The Federal Reserve Play?

[Good-Person]

I am not a US citizen, so I do not know what role does the federal reserve actually play. However, what I do know is that the federal reserve is a very powerful organisation that controls the matters related to the economy of the United States. So, what role does the federal reserve play?

 

[hastral45]

Though I'm not a citizen of US as well, but from the word, it could be suggested that Federal reserve play a vital role in the economy of the United States. It is an institution where the treasures of American government are kept. Treasures like gold, silvers, diamond etc.

 

[Heatman]

I believe that Federal Reserve usually helps when it comes to trying to manage and maintain the economy of a country in such a way that it is going to be able to stand any kind of inflation that is going to cause a serious problem.

 

[Good-Person]

I believe that Federal Reserve usually helps when it comes to trying to manage and maintain the economy of a country in such a way that it is going to be able to stand any kind of inflation that is going to cause a serious problem.

Federal reserve wants to deal with inflation and this is why they create such kind of policies. However, raising the rate of interest is NOT the solution to the problem. The fact remains that when the federal reserve increases interest rates, it causes much issues for many people.

 

[Riberet19]

From what I understand, the Federal Reserve is the one that imposes the rules in the American economy and the monetary laws of the moment, its functions are also to maintain economic stability and low unemployment in the American territory, the FED as it is called usually know is what has caused these high interest rates on the dollar, which has impacted all economies that need dollars, and are financed or have debt in them, also the stock market is affected by this of course.

 

[Heatman]

Federal reserve wants to deal with inflation and this is why they create such kind of policies. However, raising the rate of interest is NOT the solution to the problem. The fact remains that when the federal reserve increases interest rates, it causes much issues for many people.

This is actually the reason why a lot of countries that are suffering from inflation right now are seeking financial aid from international bodies such as World Bank. This is so that they can be able to get the financial assistance that they need to be able to resolve whatever challenges they are facing.