top of page
  • Writer's pictureIshfaaq Peerally

Role of the Federal Reserve System in the Economy

We recently talked about the inversion of the yield curve and how can that lead to a recession as investors expect the Federal Reserve System to raise interest rates. The Fed today plays a very important role in the economy and based on their actions we have recessions and expansions.

The Federal Reserve System is very different from most Central Banks. Most Central Banks are owned by governments. The Fed is owned by the member banks with the governors appointed by the government. The Fed is also not one central bank but a system of 12 regional banks.

The function of the Fed is also different from other central banks as it has a dual mandate, keep inflation low and keep the unemployment rate low. They do that with the help of the Federal Fund Rate, commonly known as the interest rate.

Watch the full video on YouTube:

Full analysis of Facebook:

🔬Join my INVESTMENT RESEARCH PARTNERSHIP for all my analysis and research, along with a course for investing for beginners for free🔬

📚 New to investing? Here's my investing COURSE FOR BEGINNERS with over 150 lectures 📚

🗣️Join my private investing FACEBOOK GROUP for more 🗣️

💬 Join my DISCORD CHAT 💬:

🌐 WEBSITE - Subscribe for Weekly Newsletter 🌐:

3 views0 comments

Recent Posts

See All


bottom of page