Zaid

The goal was to create a safer, more stable banking system.

Now here's what makes the Federal Reserve unique.

It's not a government agency, but it's also not a private bank.

It's like a weird hybrid situation.

Think of them like a quasi government institution.

You know, Congress created the Federal Reserve.

They oversee the Federal Reserve, but the Fed operates independently.

They don't,

take orders from the president or Congress when it comes to setting monetary policy.

And that independence is key, but we'll come back to that because that is at the heart of the beef between President Trump and the Fed today.

Now, the Fed's powers have evolved a lot since 1913, but for the last five decades, it's operated under what's called the dual mandate.

This was written into law in the 1970s, and it gives the Fed two main jobs.

Number one is to keep prices stable, basically keeping inflation in check.

And number two is maximum employment, keeping unemployment low and the job market strong.

Now, the main way the Fed does this is by controlling interest rates.

By raising or lowering rates, the Fed can essentially speed up or slow down the entire economy.

Lowering rates makes borrowing money cheaper, which encourages spending and investment, while higher rates do the opposite.

They make borrowing more expensive, which slows things down.

It's an incredibly powerful tool, and the Fed's decisions have a massive impact on the economy, and sometimes they get their decisions wrong.

So let's go through some of the big moments for the Fed over the last 100 plus years.