Federal reserve and rates

The importance of the Federal Reserve System

The Federal Reserve System represents the central banking system of the United States, created back in 1913, as a manner of response to numerous financial panics and the continuous need of an entity that could exercise control over the monetary system, in order to bring about its improvement and avoid crises in the future.

At this moment in time, the main functions of the Federal Reserve System include addressing the problem of banking panics, serving as the central bank of the US, striking a balance between banks and private interests, supervising and regulating banking institutions, protecting the current credit rights of US citizens, maintaining stability in the world’s financial system, strengthening the US’ influence in the world’s economy, facilitating the exchange of payments and more.
At this moment in time, the main functions of the Federal Reserve System include addressing the problem of banking panics, serving as the central bank of the US, striking a balance between banks and private interests, supervising and regulating banking institutions, protecting the current credit rights of US citizens, maintaining stability in the world’s financial system, strengthening the US’ influence in the world’s economy, facilitating the exchange of payments and more.

Currently, it is unclear how the Federal Reserve System will evolve over the year of 2017, yet economic analysts have released various case studies showcasing that if the world’s financial state continues to grow positively, then chances are that this will bring about a positive impact for investors as well.

For more information about the Federal Reserve System and its influence on the market, you can always refer to LucasOrchard.

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