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The Federal Reserve, as the central bank of the United States, has the power to regulate monetary policy by influencing interest rates and controlling the money supply. It can set the federal funds rate, which affects borrowing costs and economic activity. Additionally, the Fed supervises and regulates banks to ensure stability in the financial system and acts as a lender of last resort during financial crises. Its actions aim to promote maximum employment, stable prices, and moderate long-term interest rates.

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3mo ago

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What changes were made to the Federal Reserve system in 1935?

The federal reserve system was given more centralized power


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