How Does The Federal Reserve Affect The Economy

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The Federal Reserve is the central bank of the United States of America. The Federal Reserve has the ability to directly influence the economy. The purpose of the Federal Reserve is to create and maintain a stable monetary and financial policy, when this goal is achieved Americans are more likely to trust the government with their money. If Americans trust the government with their money, then the people will deposit their money into banks, which the banks will then lend out boosting the economy. Since the Federal Reserve is associated with the government, many citizens believe that monetary policy will emulate the current president’s views and opinions. While what the president does will affect the economy and consequently the Federal

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