The Fed sets short-term interest rates through the federal funds target, supervises banks, and manages the money supply. Its mandate is stable prices and maximum employment.
Fed policy is the single largest macro driver of asset prices. Rate cuts generally lift stocks and bonds; hikes usually pressure both, especially long-duration assets.
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Open Decision Lab →Frequently asked questions
How often does the Fed meet?
The FOMC meets 8 times per year and can act between meetings in emergencies.