Fed

Fed
Fed is used in behalf of Federal Reserve Bank. It is an organization that monitors and maintains the supply of currency of United States.Made by Congress in the year 1913, it consists of a group of Governors, twelve regional banks and large numbers of small affiliated institutions. Federal Reserve of United States has large numbers of techniquesfor influencing the supply of American money. Most important among them is the Fed power to raise or lower the currency amount in circulation. Fed can buy or sell the securities of the government to its main traders, which attract extra Federal Notes in circulation or eliminates large number paper finance from supply. Fed works withU.S Mint for printing extra paper finance from supply. Another power of Fed is the ability for influencing the rate of interest. Fed performs this task by altering the degreeat which it offers loans to the fellow banks. As the supply of money is an important factor in finding the whole trade balance between the financial markets, the foreign traders working with the US currency notices the actions of Federal Reserve. The present chairman of Federal Reserve is Ben Bernanke.