Question

What is the goal of the Federal Reserve System

Answer 1

Following are the main objectives of Federal Reserve system:

1. It conducts the monetary policy of the US economy by influencing the money conditions in the economy in order to stabilize the prices and unemployment.

2. Another purpose is to regulate and supervise the banking and financial system in the economy in order to protect the credit rights of the consumers along with maintaining the stability of the financial system by managing risks in the financial markets.

3. Another major role of the Fed is to manage the payment system of the country by providing certain financial services to the financial institutions, and foreign institutions.