The Federal supervises and regulates a lot of the nation’s banks to secure consumers. It preserve the stability of the financial markets and constrains possible
crises and it provides banking services to other banks, the U.S. government and
foreign banks. The Fed moderates long-term interest rates through open market
operations and the fed funds rate. The goal of monetary policy is healthy economic growth. That target is a
2-3 percent gross domestic product growth.
