Federal Reserve Powers
10th Grade · Social Studies · 45 min· Ccss Ss.9-12.econ.16
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Learning Objective
I can describe the key powers of the Federal Reserve.
- 1
The Federal Reserve (the Fed) influences the U.S. economy by controlling the money supply and influencing interest rates.
- 2
The Fed uses open market operations, such as buying and selling government securities, to influence the federal funds rate.
- 3
The Fed aims to keep unemployment and inflation in check; lowering rates can stimulate the economy, while raising rates can reduce inflation.
