Tip:
Highlight text to annotate it
X
As the nation's central bank, the Federal Reserve manages the nation's money
supply,
oversees banks and issues currency.
But, did you know that the Fed touches the lives of Americans
every day? From paying bills — Oh yeah, got to pay the rent -- to cashing a check
or to buying groceries? Whether you use your phone or laptop to pay bills —
Rent, paid — your payment is likely processed through the Federal Reserve System.
Money you carry is issued by the Federal Reserve. We make sure that money
is fit to use. And, a regional Reserve Bank helps distribute that cash to banks
and other financial institutions.
But we don't print it—that's the job of the U.S. Treasury.
The Fed manages the nation's money supply to promote
a healthy economy. That's called monetary policy—and
through its actions the Fed influences the supply and cost of credit
that's available to businesses,
households and banks. The Fed affects many interest rates that consumers
pay, from rates on car loans to mortgages. We don't directly set these rates,
but we influence them through monetary policy. A healthy economy also creates
job opportunities.
We help money get from point A to point B—
by providing payment services to banks, including check processing.
And the Fed operates a nationwide check clearing
system. Hi—I just wanted to see if you had that money for the office coffee fund. I do. I have the check right here.
Today, for more efficient payment processing,
many banks actually use electronic check imaging where a
"picture" is taken of your check and sent electronically to the bank for
collection.
In addition to promoting maximum employment,
Congress has charged the Fed with conducting monetary policy
in a way that keeps inflation low and stable.
When there's inflation in the economy, you pay more for the goods and services
that you purchase.
When inflation rates are stable, the total basket of goods and services you
buy today
will be about the same overall with some things costing more
and others less. Stability of our financial system is important for
consumer confidence—Wow, that's a good rate—
and the growth of our economy.
The Fed is one of several agencies that supervise banks and other financial
institutions.
We perform regular examinations of their financial conditions
and risk management procedures to make sure they're following safe and sound
practices,
so you can be sure your bank deposits are safe.
Great. Rent payment has cleared. And that safety and soundness
is important for consumer confidence and economic growth.
In a move to support price stability,
the Federal Reserve today issued...Wow. The Fed really does impact my life.
Much has changed in the world since the Fed's creation one hundred years ago.
But one thing remains the same—our dedication to promoting a stable
and growing American economy. In ways, both small and large,
we're a part of your life—each and every day.