The Federal Reserve manages the US money supply from "summary" of The Economics Book by DK
The Federal Reserve, often simply referred to as the Fed, plays a crucial role in the United States economy by overseeing and influencing the money supply. This involves regulating the availability of money and credit in the economy to achieve specific economic goals. The Fed uses various tools to manage the money supply, such as open market operations, setting reserve requirements for banks, and adjusting the federal funds rate. One way the Federal Reserve manages the money supply is through open market operations. This involves buying or selling government securities in the open market to control the amount of money in circulation. When the Fed buys securities, it injects money into the economy, increasing the money supply. Conversely, when it sells securities, ...
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