The Fed’s primary objective is to foster a stable and prosperous U.S. economy, with its Board of Governors and regional banks continuously analyzing economic indicators like unemployment, GDP, consumer spending, and business investment. As the authority responsible for monetary policy, the Fed closely monitors the supply of circulating USD.
The FOMC convenes eight times annually to analyze current economic data and develop effective monetary policies, followed by press conferences to communicate potential policy adjustments to the public. Additionally, the Chair of the Federal Board of Directors testifies twice a year in Washington, D.C.
As an independent entity separate from the U.S. Federal Government, the Fed is not required to seek Congressional approval for its proposed monetary changes. The FOMC has the authority to promptly ratify interest rate adjustments or new reserve requirements. The Fed’s members, who are not elected, also play a significant role in appointing officials within the U.S. government.
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