We Conduct Monetary Policy to Promote a Healthy Economy
WHAT is it? Monetary policy is the central bank’s actions to influence the money supply and interest rates.
WHY do we need it? The Fed conducts monetary policy to keep prices stable and to support a high level of employment, goals that are mandated by Congress.
HOW is it done? The Fed buys and sells government securities to influence the amount of money in the banking system, which affects interest rates throughout the economy.
WHO is involved? Monetary policy is set by the Federal Open Market Committee, which includes the Fed’s Board of Governors and Reserve Bank presidents and meets eight times per year.