The FED is the bank for our Government and all US banks. By controlling the money supply they are able to influence our economy. They are the system that decides how much money is in the economy, which can either cause our economy to expand or contract. If they want to increase money supplies they buy securities and to decrease the money supply they sell securities.

When inflation is high, everything costs more, so money is worth less. Having too much currency in the market normally causes this. This has a huge impact on business long term planning and growth. Both businesses and individuals are less likely to spend on things like building, houses or saving because of t

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