The central bank was designed to operate free of short-term political influence to prevent the Fed from making disastrous policy decisions

Central bank independence is correlated with lower inflation on average

Executives may seek to influence the central bank to reduce interest rates for political points. Since its creation in the early 20th century, the US' Federal Reserve saw the most interactions from the president during the Nixon and Ford administrations.

The Federal Reserve is the most powerful financial institution in the US

The Fed controls the money supply, determines interest rates, and regulates the banking system. Established in 1913 after a volatile series of financial panics, the central bank has managed to retain its legitimacy despite broad critiques against its obscure and independent decision process.

See all 16 Fed Chairs ranked by stock market performance

Sixteen people have held the office of Fed Chair since 1913, with varying results. From the Fed’s first leader, Charles Hamlin, to Jerome Powell, see in a ranked list how stocks fared for each chair within distinct macroeconomic conditions.

See a ranking of the best (and worst) Federal Reserve Chairs since 1914 out of the 16 men and women who have held the office since.

Early Americans hated the idea of a central bank

After a series of economic panics induced by a lack of reserve cash at regional banks, the architects of today’s Federal Reserve opted to emphasize the goal of the bank as a reserve at the federal level—thus creating the lasting name.

The Federal Open Market Committee is a 12-member voting body that sits within the Fed

The committee meets every six weeks to decide whether to maintain, raise, or lower the federal funds rate, which determines all lending costs in the US. It consists of the seven permanent central board members, the president of the New York Fed, and four rotating heads of the other 11 regional banks.

Why the structure of the National Science Board contributes to the NSF's nonpartisan design

After Congressional debates over the merits of having an independent agency versus one accountable to the president and the public, it was decided that the director and Board members would be presidentially appointed but serve staggered six-year terms. By replacing one-third of the Board's members every two years, each could outlast any single administration.

Central banking in the US has had a fraught political history

That history includes its doomed early efforts in the First and Second National Banks, as well as its failure to address the worst financial period in US history, the Great Depression.

33% of Americans say they don’t know very much about what the Fed does

While most Americans grasp the central bank’s impact on curbing inflation, they don’t know that the Fed is tasked with what is called a “dual mandate” to provide price stability and maximum employment. Furthermore, few understand the Fed is independent—it does not answer to Congress or the US president.

The Federal Reserve didn't institute an official no comment period before meetings until 2011

Although Fed governors have largely practiced some version of a blackout period before Federal Open Market Committee meetings where the board decides where interest rates should be since the 1980s, the official blackout period wasn't formalized until 2011. During the blackout, members of the Federal Reserve generally aren't allowed to speak publicly on macroeconomic or monetary policy in order to avoid any confusion over the board's decisions.

The idea for the Federal Reserve was conceived in secret in 1910—with bankers donning duck hunt gear for disguise while traveling to a remote country club on Georgia's Jekyll Island

Congress mandated that the Fed streamline check payments

When it was first created in the 1910s, the Federal Reserve System became a crucial link between the nation's regional banks. The increasing number of checks used by the thousands of banks across the nation required a central operator, and the Fed was uniquely positioned to help. Learn more about the role the Fed played in the history of checks.

Supreme Court justices serve for life

The Constitution grants Supreme Court justices lifetime appointments to shield them from electoral politics and outside pressure, a design meant to preserve judicial independence but now widely debated due to longer lifespans and partisan balances of the court.

The Federal Reserve Act's foundation was laid in a secretive meeting at the world's most prestigious club

Republican Sen. Nelson Aldrich of Rhode Island organized a highly secretive meeting of the minds at the world’s most prestigious club on Jekyll Island, Georgia, where a who’s who in the financial world hashed out details over the course of a week.

Read former Fed chair Ben Bernanke's 2002 speech about preventing deflation

Very low inflation rates in the early 2000s in the United States and a worsening recession in Japan sparked some domestic concern over the threat of deflation. While Bernanke wasn't Chair at the time of the speech, he emphasized the Fed's role in preventing deflation.

The Fed can use quantitative easing to stimulate growth once it has lowered the federal funds rate as far as it can go

This involves purchasing large-scale assets from banks beyond just Treasury bills and bonds. This effectively gives banks much more liquidity, with the hope that they will actively lend it out at cheaper rates and expand the economy. But quantitative easing runs the risk of sparking inflation.

Federal Reserve chair Jerome Powell is a Deadhead

For the uninitiated, that means Powell is an avid fan of the band The Grateful Dead. Powell is also a musician, cyclist, and dog park kerfuffle survivor.

Despite being favored by 87% of Americans, Congress does not have term limits.

Early state constitutions often limited governors to short terms

In the years after independence, many states drafted constitutions to limit executive power. Most governors served only one- or two-year terms, sometimes with breaks before reelection.

The Senate must approve top presidential appointments

Under Article II of the Constitution, the United States Senate provides "advice and consent" on presidential nominees. This resource displays the outcome of every Cabinet nomination since Jimmy Carter's presidency and every Supreme Court nomination in US history.

The framers feared creating another monarchy through an unchecked executive

Having rebelled against British royal power, the framers deliberately limited the presidency—balancing "energy in the executive" with safeguards against tyranny. Debate at the 1787 Constitutional Convention centered on preventing any return to monarchical rule.

See how the executive branch of the US government works

The executive branch enforces federal laws and is led by the president, who serves as head of state, commander in chief, and chief diplomat. Supported by the vice president, Cabinet, and around 4 million federal employees, it carries out laws through 15 departments and dozens of agencies.

See checks signed by US presidents

One bank has made it a point to conserve checks from US presidents. Peruse this gallery of signed checks from Washington, FDR, JFK, Lincoln, and more.

The United States is one of only around two dozen countries with a fully federal system of government, in which power is divided between national and state governments.

The USPS spent $3.97B in 2024, accounting for .058% of the federal budget.

Government shutdowns, 101

Roughly a quarter of the US federal government's spending must be approved annually through a set of 12 appropriations bills in Congress. When they aren't, a government shutdown ensues, where federal agencies are legally barred from spending any further money on nonessentials. This explainer covers the basics of government shutdowns and their impact on the broader culture.

Treasury bonds, notes, and bills are critical vehicles for the federal government to raise money for public expenses and manage the national debt

For investors, they're all usually considered low-risk options since they’re backed by the federal government.

Why Ray Dalio thinks the US deficit is a political problem

Dalio frequently argues that debt cycles are inevitable and a tradition of every empire. However, he said in 2025 that the US was headed for a debt crisis. Dalio says that while Republicans and Democrats agree on the math of the debt crisis, all politicians make promises to neither increase taxes nor cut government benefits—which Dalio says can't close the deficit.

The US dollar is the most widely circulated currency in the world, and is involved in nearly 90% of global transactions

The Glass-Steagall Act separated commercial banks in the US from investment banks

In 1933, the Glass-Steagall Act legally separated commercial banks in the US from investment banks. However, by 1999, the act was repealed—meaning that today’s investment banks are no longer required to be separate from the type of bank where you deposit your paycheck.

The USPS spent $3.97B in 2024, accounting for .058% of the federal budget.

The US Constitution is widely regarded as the longest-standing written national constitution still in force—see how it has influenced rights worldwide.

Hedge funds, the private investment firms that trade a wide swath of financial assets, make money by imposing steep fees on investors and from the fund's investment performance.

Iran's Revolutionary Guard Corps is independent of Iran's regular army and is one of the most powerful and influential military-political organizations in the Middle East.

Experimental hantavirus vaccines and therapies, still under development, have long been funded by the US military.

Discover the catastrophic consequences of a failure of the US electrical grid—something that is more likely than many Americans think.

Chaos theory—informally known as the butterfly effect—is the reason why weather forecasts are presented with probabilities rather than certainties.

How Amazon operates a 'flywheel' business model, a self-reinforcing cycle that drives continuous growth

Some coin denominations have ridges etched on their sides, partly to prevent counterfeiting, in a practice called 'reeding.'

While the sun's gravity keeps the planets in orbit, their gravity also pulls on the sun, causing it and everything else in the solar system to orbit around a mutual balance point called the barycenter—the true center of the solar system.

About 12.5% of US adults experience a phobia in their lifetime, a diagnosis that hinges on the intense fear interfering with daily life and persisting for at least six months.

US intelligence allegedly pursued more than 600 schemes to assassinate Cuban revolutionary Fidel Castro.

Legendary architect Frank Lloyd Wright designed the SC Johnson headquarters in Wisconsin, aiming to make a cathedral-like workplace

The Beatles' US label rejected the band's first two singles, 'Please Please Me' and 'From Me to You,' with one executive calling the band 'dead in the water.'

SpongeBob exemplifies Aristotle's philosophy for living well because he understands that happiness doesn't come from external factors like money, recognition, or power.

Play the role of a student in a game where you try to navigate college and remain debt-free, selecting different income levels, high school experience, race, ethnicity, and more.

Pure water does not conduct electricity because this flow of energy requires the movement of charged particles, and water is a neutral molecule.

Studies suggest when you sleep is as important as how much you get, and syncing with your circadian rhythms may lead to less fatigue and improved long-term health outcomes

The identity of the Tank Man in the iconic photo from the 1989 Tiananmen Square protests remains unknown and was possibly killed.