AP MacroeconomicsMoney, Banking & Finance
Federal Reserve System
The Federal Reserve is the central bank of the United States, responsible for monetary policy, bank supervision, and financial stability.
Created in 1913, the Fed sets the federal funds rate target and uses open market operations to influence the money supply and interest rates. Its dual mandate is maximum employment and stable prices. It is independent of day-to-day political control.
Interactive graph
Money Market →
Drag the curves and see it for yourself.
Study module
Monetary Policy →
Full lesson, practice questions, and flashcards.