The Federal Reserve, often referred to simply as “the Fed,” is the central banking system of the United States. Established in 1913, it aims to provide the country with a safe, flexible, and stable monetary and financial system. The Federal Reserve has several key functions, including regulating monetary policy to control inflation and stabilize the economy, overseeing and regulating banks to ensure the safety and soundness of the banking system, providing financial services to the government and financial institutions, and managing the nation’s money supply and interest rates. It operates through a decentralized structure consisting of a Board of Governors in Washington, D.C., and twelve regional Federal Reserve Banks. The Fed plays a crucial role in influencing economic activity and maintaining financial stability in the U.S. economy.
Federal Reserve Chair Jerome Powell emphasized the central bank's increasing focus on the weakening job market and not just on curbing inflation. This shift suggests that the Fed is likely…