The Fed

What the Federal Reserve does, how its rate decisions and balance sheet affect markets, and how to read a Fed day without overreacting.

The most important bank you never use

The Federal Reserve, usually called the Fed, is the central bank of the United States. You cannot open an account there, but its decisions affect the interest on your savings, the rate on your mortgage and the value of your stocks. Markets around the world pay close attention to every Fed meeting, statement and speech.

Unlock all of Investing School

The rest of this lesson, its chart examples and quiz are part of Investing School. Start free with Stock Market Fundamentals and the first lesson in every category.