The role of the Federal Reserve from "summary" of Too Big to Fail by Andrew Ross Sorkin
The Federal Reserve, often referred to as the Fed, plays a critical role in the United States economy. It serves as the central bank of the country, responsible for making key decisions that impact the financial system. One of the primary functions of the Federal Reserve is to regulate monetary policy, which involves controlling the supply of money and credit in the economy. By adjusting interest rates and implementing various tools, the Fed aims to achieve stable prices, maximum employment, and moderate long-term interest rates. During times of financial crisis, such as the one depicted in 'Too Big to Fail', the Federal Reserve takes on an even more significant role. In the wake of the 2008 financial meltdown, the Fed stepped in to provide emergency liquidity to banks and financial institutions facing imminent collapse. Through measures such as quantitative easing and bailouts, the Federal Reserve sought to stabilize the financia...
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