economics
federal reserve
The central banking system of the United States, which manages the nation's monetary policy and regulates banks.
Example
"The Federal Reserve raised interest rates to combat inflation."
💡 Memory Tip
The FED is the federal government's RESERVE of financial power — it controls the money supply.
Etymology
Federal (national) + reserve (a store held back) — the national bank held in reserve to stabilize the economy.
Common Misspellings
federal resevefederal reservfedreal reservefederel reserve
Related Terms
See Also
central bank