“Fed” is a colloquial term that commonly refers to the Federal Reserve System, the central banking system of the United States. Established in 1913, the Federal Reserve, often simply called “the Fed,” is responsible for implementing monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates. It oversees the nation’s money supply and provides financial services to the government and financial institutions. The Fed plays a crucial role in regulating and supervising banks, setting interest rates, and acting as a lender of last resort to stabilize the economy during financial crises. Moreover, the term “Fed” can also refer to federal authorities or agencies in general, encompassing aspects of federal governance.
Federal Reserve Governor Christopher Waller acknowledged that the central bank's response to the COVID-19 pandemic was not ideal, as inflation began to surge and the initial promises made during the…