Federal Reserve

The Federal Reserve

The federal reserve is often misunderstood as a place where we keep our money. Actually,  The Federal Reserve Board has regulatory and supervisory responsibilities over banks. This includes monitoring banks that are members of the system, the international banking facilities in the U.S., the foreign activities of member banks and the U.S. activities of foreign-owned banks. Basically, the Federal Reserve’s duty is to keep inflation balanced and in a state of not growing too much or too little. Unfortunately, the federal reserve is based on human judgement, therefore human error is very apparent. 
     So, when we need money, we borrow it from the Federal reserve, and eventually have to pay it back. People think we owe most of our debt to Other countries like China, but we actually owe most of it to the federal reserve.