Last weeks Friday Funnies covered what the Federal Reserve doesn’t do. This week’s comic looks at some of the key functions that the Fed performs.
So the Fed’s main task is to keep the U.S. economy functioning smoothly, but how exactly does the Fed do this?
They probably should have also shown a graph of the target federal funds rate set by the Federal Open Market Committee (FOMC). It’s the number that the news media often latches on to.
Next week we’ll discuss the balancing act that the Fed performs between money and credit to keep the economy stable.