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Federal Reserve

Also called the Fed.

The U.S. central bank. Its Federal Open Market Committee sets the target range for the federal funds rate.

Congress set the Fed's monetary policy goals as maximum employment, stable prices and moderate long-term interest rates. The first two are known as the dual mandate. Source 1

Its main policy tool is the target range for the federal funds rate, set by the FOMC. Source 1 Source 2

Related terms

Sources

  1. Federal Reserve Board: Monetary policy: what are its goals? How does it work? (opens in a new tab)
  2. Federal Reserve Board: What is the Federal Open Market Committee? (opens in a new tab)

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