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  • Educator Doug Levinson
  • Animator Qa'ed Mai
  • Narrator Doug Levinson


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One of the more mysterious areas of the economy is the role of the Fed. Formally known as the Federal Reserve, the Fed is the gatekeeper of the U.S. economy. It is the central bank of the United States -- it is the bank of banks and the bank of the U.S.government. The Fed regulates financial institutions, manages the nation's money and influences the economy. By raising and lowering interest rates, creating money and using a few other tricks, the Fed can either stimulate or slow down the economy. This manipulation helps maintain low inflation, high employment rates, and manufacturing output.

Based in Washington, D.C., the Fed is the bank of the U.S. government and regulates the nation's financial institutions. It's comprised of a network of 12 Federal Reserve Banks and a number of branches. This is all overseen by the Fed's Board of Governors. See more here.

Who owns the Federal Reserve? How is the Federal Reserve System structured? What are the responsibilities/functions of the Federal Reserve System? Does the Federal Reserve operate using tax dollars? Does the Federal Reserve pay taxes? Who audits the Federal Reserve and how often? Want to know the answers to all of these questions?
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Lesson Creator
New York, NY
There are a few problems with this video. First of all, most money is not printed into circulation by the government. It is actually created out of thin air by the issuance of debt from the banks. Secondly, the President only nominates a minority of the members of the Board of Governors. Most are selected by the banks themselves. Further, the stated goals of the Fed are per propaganda but not reality. Reality is 1) indebt the government to the banks, 2) inflate to increase progressive taxation.
06/30/2014 • 
 8 Responses
 / 8 Updates
I don't really agree to this suggestion that increasing inflation will increase money spending and vice versa. What do you believe? Are there any data to support this argument?
06/23/2014 • 
 6 Responses
 / 6 Updates