The Four Main Responsibilities Of The Federal Reserve

What is the Federal Reserve? The Federal Reserve was created in 1913 in the wake of numerous financial panics that occurred in the United States. It was founded by Congress in order to provide the nation with a safer, more flexible, and more stable monetary and financial system. Although the Federal Reserve is the most vital asset in maintaining the stability of the U.S. economy, not many Americans are familiar with the history and responsibilities of the “Fed”. The Federal Reserve has four main responsibilities. The first being: “Conducting the nation’s monetary policy and credit conditions in the economy in pursuit of full employment and stable prices.”
The Fed regulates monetary policy in attempt to minimalize inflation and make it possible
It also prohibits unfair practices in banking and closely supervises smaller banks to insure consumers are not taken advantage of by bankers. The Federal Reserve Banks is also “a bank for banks”. It provides financial services to depository institutions including smaller banks, credit unions, and savings and loans, much like those that banks provide for their customers. These services include but are not limited to: collecting checks, electronically transferring funds, and distributing and receiving cash and coin. The Federal Reserve’s third responsibility is:
“Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.”
The Fed maintains the stability of our financial system by the regulating banks and the printing of legal tender. It also tackles monetary issues when they arise to prevent economic catastrophe i.e. the Great Depression, which led to stricter bank and economic regulations. The Federal Reserve’s final responsibility