US Federal Reserve

The US central bank and the world's most influential monetary policy institution. The Fed's decisions on interest rates — made by its Federal Open Market Committee — ripple through global bond markets, currencies, and capital flows within minutes of announcement.

Established by the Federal Reserve Act in 1913, the Fed operates as a hybrid public-private institution across 12 regional Federal Reserve Banks. Its dual mandate — maximum employment and stable prices — creates structural tensions during stagflation episodes. The Fed Chair serves a four-year term; the law requires 'cause' to remove them, though this has never been legally tested.