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Federal Reserve


The Federal Reserve (or Fed) is the central bank of the United States of America. It was brought into existence in 1913 after a number of financial panics.

In the wake of these crises, it was considered a good idea to have some sort of centralized control over the economy in order to be better able to manage the economy in the future.

The Federal Reserve’s official mandate is to maximize US employment, keep prices stable (control inflation) and to set long-term interest rates.

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