Founded in 1913 to provide the United States with “an elastic currency” after what was known as the Bankers’ Panic of 1907. Consisting of 12 member banks with 25 branches across the nation, the Fed is technically a private organization. But it fulfils the standard central bank roles. The Fed decides the country’s monetary policy (interest rates and, since 2008, quantitative easing), manages its reserve assets (including gold bullion on behalf of the Treasury), clears checks and other bank-account transfers, and acts as lender of last resort to troubled lenders and investment institutions. The success or otherwise of the Federal Reserve’s policies impact the strength of the Dollar and consequently impact the demand for gold and silver, and their price.
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