The Fed

The Federal Reserve, called the Fed for short, is the central bank of the United States, and the most influential in the world. It was established on December 23, 1913, through the enactment of the Federal Reserve Act, after a series of financial mishaps led to the desire for central control of the monetary system to alleviate financial crises. The Fed is regarded as the most powerful and influential central bank in the world because its monetary policies usually have ripple effects on other financial markets (Europe, Asia, and Latin America).