The Federal Reserve
Fed policy decisions, interest-rate moves, and what the FOMC's actions mean for borrowing costs, savings yields, and the broader economy.
The Federal Reserve is the central bank of the United States, tasked by Congress with a dual mandate: stable prices and maximum sustainable employment. Its main policy tool, the federal funds rate, is set by the Federal Open Market Committee (FOMC) at regularly scheduled meetings throughout the year, with decisions accompanied by a statement and, at alternating meetings, updated economic projections and a press conference from the Fed Chair. Markets parse Fed communications closely — not just the rate decision itself but the tone of the statement and any forward guidance — because expectations about future rate moves are often already priced into markets well before the Fed actually acts.
Explore The Federal Reserve
What Happens at an FOMC Meeting
FOMC meetings follow a structured process behind closed doors before the public sees a statement. Here is what actually happens.
By Allen Krewzz · July 16, 2026
How Fed Rate Decisions Affect the Stock Market
Fed rate decisions ripple through markets in ways that go beyond the headline number. Here is how the transmission actually works.
By Tamanna Shaikh · July 16, 2026
Reserve Requirements Explained: How Banks Hold Money
Reserve requirements once dictated how much cash banks had to hold back. Here is how the concept works and how the Fed’s approach has evolved.
By Allen Krewzz · July 16, 2026
What Is the Discount Window and When Does the Fed Use It
The discount window is the Fed’s direct lending facility for banks. Here is how it works, who uses it, and why it exists.
By Allen Krewzz · July 16, 2026
How the Fed Fights Inflation
When inflation runs too high, the Fed has a specific playbook. Here is how it actually works to bring prices back under control.
By Tamanna Shaikh · July 16, 2026
The Fed’s Dual Mandate: Employment and Price Stability Explained
Congress gave the Fed two jobs at once: maximize employment and keep prices stable. Here is how those goals interact — and sometimes conflict.
By Allen Krewzz · July 16, 2026
What Is the Fed Dot Plot and How to Read It
The Fed dot plot shows where individual policymakers expect interest rates to go. Here is how to read it — and its real limitations.
By Allen Krewzz · July 16, 2026
Quantitative Easing vs Quantitative Tightening Explained
Quantitative easing and quantitative tightening are less conventional Fed tools used when interest rate moves alone are not enough. Here is how each works.
By Deepak Kuldeep · July 16, 2026
How the Fed’s Interest Rate Decisions Affect Mortgages and Loans
Fed rate decisions do not set your mortgage rate directly, but they shape the environment it is priced from. Here is exactly how that works.
By Allen Krewzz · July 16, 2026
The Federal Funds Rate Explained
The federal funds rate is the Fed’s primary policy lever. Here is what it actually is and how it cascades through the entire economy.
By Allen Krewzz · July 16, 2026
What Is the FOMC (Federal Open Market Committee)
The FOMC is the group inside the Federal Reserve that actually sets interest rate policy. Here is how it is composed and how it makes decisions.
By Deepak Kuldeep · July 16, 2026
What Is the Federal Reserve and What Does It Do
The Federal Reserve is the central bank of the United States. Here is a clear, beginner-friendly breakdown of what it is and what it actually does.
By Tamanna Shaikh · July 16, 2026
Open Market Operations: How the Fed Actually Moves Rates Day to Day
The Fed announces a target rate, but announcing it doesn't make it real — open market operations are the daily buying and selling that actually gets the market rate there.
By Deepak Kuldeep · July 5, 2026
How Central Bank Interest Rates Actually Work
A single number set by a committee in Washington ends up changing your credit card rate, your mortgage quote, and your savings account yield. Here's the transmission mechanism, step by step.
By Allen Krewzz · July 5, 2026