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The Purpose Of The Federal Reserve System

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The Federal Reserve System is the central bank of the United States of America and it is arguably the most powerful central bank in the world. It has a number of different purposes which centre around aiming to promote a healthy US economy. In order to promote a healthy economy, the Federal Reserve System must aim to maximise employment and to stabilise prices. A high employment rate and stable prices make planning for the future easier for firms and households and allow for more economic opportunities. So in order to achieve its aims the Federal Reserve System must implement effective monetary policy. Since the US has the largest economy in the world any actions of the Federal Reserve System will probably influence the global economy. For
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