In recent years economists and financial market participants attach more importance to US monetary policy, inflation and actions of the Federal Reserve, leaving out what is actually happening on the markets.
What contributes to such a change of focus, and what is the Federal Reserve System itself?
The Federal Reserve System (FRS, the Fed) is a supreme order authority, which has a variety of different functions. Those include maintenance of balance between commercial banks’ interests and national ones, regulation and control of banking institutions, protection of users’ credit rights, ensuring stability of the financial system and economy in general, and many others.
CPI consumer price index