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What is the Fed (Federal Reserve)?

The Fed is the central bank of the United States: it sets the interest rates and monetary conditions that move markets worldwide.

Its dual mandate: maximum employment and stable prices (2% inflation). The main tool is the fed funds rate, which transmits to mortgages, loans and the valuation of every financial asset. Eight times a year the FOMC meets and markets hold their breath.

"Don't fight the Fed" is one of Wall Street's oldest adages: when the Fed cuts rates it supports markets, when it hikes it cools them. The 2022 hiking cycle — the fastest since the 1980s — sank stocks and bonds simultaneously.

Concrete example

A single speech by the Fed chair can move trillions: markets parse every word to guess the direction of rates.

How you see it in InsiderFlow

On InsiderFlow these concepts come alive on real data: what big funds and insiders are buying, explained every day.

Frequently asked questions

Who leads the Fed?

A chair nominated by the US president and confirmed by the Senate, with a renewable four-year term; decisions are collegial (FOMC).

What does the Fed do in a crisis?

It cuts rates, lends to banks and, since 2008, buys securities in the market (quantitative easing) to support the system.