fbpx

What is the Fed and why is it important to the global economy

What is FED

Many countries have their own central banks, and the Fed is the Federal Reserve Bank of the United States. The United States holds the world’s most impactful currency, the U.S. dollar. And as we all know; gold is an inflation hedge as well as a guarantee for the currency of various countries. But there is also an asset that many countries trust, which is the US dollar spread across all countries. Therefore, the FED, or Federal Reserve policy, is like setting the direction of the assets in the hands of each country as well.