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

Periodically, the Federal Open Market Committee decides whether to raise, hold, or lower the federal funds rate

The federal funds rate is the interest rate at which banks lend their excess funds through the Fed. This influences what banks are willing to pay consumers for their deposits in savings and CD accounts. Typically, the higher the federal funds rate, the higher the interest rates on CDs.

Of the 12 voting policymakers at every Federal Open Market Committee meeting, 4 are present on a rotating basis

To allow for diverse regional perspectives in the votes on monetary policy, heads of regional banks hold voting power on two- or three-year cycles.

The two-day marathon meetings of the Federal Open Market Committee follow a logical process of information sharing

In a stately room in the Eccles Building in Washington, DC, the 17 participants of the FOMC and their aides report on economic conditions and decide monetary policy.

The Fed operates within the open market as a competitive bidder of interest rates

Because it’s viewed as a risk-free platform to earn interest, whatever rate it sets becomes the default benchmark. To maintain its target rate prescribed by the Federal Open Market Committee, the Fed has various tools it offers both commercial banks and home loan institutions.

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

Although the Fed Chair and the six other Governors of the Board are appointed by the US president and approved by Congress, the Fed is not funded by congressional appropriation, and its board members are appointed to lengthy 14-year terms.

The CME FedWatch Tool predicts the likelihood of future rate changes

It's based on federal fund futures contract prices. At a Fed meeting in July 2024, for instance, Chair Jerome Powell once again decided not to lower rates, though he said cuts could be on the table in September.

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.

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.

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.

The Federal Reserve follows the health of the US economy by tracking the money supply

That includes all of the physical and electronic money in circulation. It tracks not only US coins and bills, but also the money that moves through bank deposits. The Fed uses metrics called trackers to follow different types of transactions through the money supply.

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.

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.

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

Courts referee federalism disputes between Congress and the states

Modern federalism is primarily worked out through litigation. The Supreme Court decides disputes in written opinions that explain when federal law preempts state authority, how far Congress's powers extend, and when states may resist.

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 federal debt ceiling 101

The debt ceiling periodically takes center stage as Congress debates whether to increase or suspend this self-imposed limit on its borrowing authority. Learn the basics on this crucial feature of US fiscal policy with this Q&A.

The IMF was created to prevent the currency crises that destabilized the 1930s global economy

Founded in 1945, the IMF monitors exchange rates, promotes financial stability, and provides emergency funding to countries that cannot pay for their imports. It currently has 191 member countries and acts as a lender of last resort for struggling economies.

Congressional committees quietly shape most legislation

This video explains how 20 congressional committees—standing, select, and conference—perform much of Congress's work, from drafting legislation and holding hearings to overseeing executive branch agencies.

The Federal Emergency Management Agency leads the US response to disasters

Established in 1979, FEMA coordinates the government's response to hurricanes, wildfires, floods, and other disasters, providing funding, logistical support, and recovery assistance. In FY 2024, the agency spent $35.1B, nearly 40% of the Department of Homeland Security's total budget.

See every time the minimum wage has been raised

Unlike some other nations, the US minimum wage isn’t tied to inflation. So instead of it automatically rising alongside the cost of living, Congress has to vote to raise the minimum wage every time they think it’s necessary.

What is the Fediverse?

The "fediverse" is a league of like-minded apps looking to make our digital identities—including posts, followers, activity—move seamlessly between networks. It's a decentralized approach, making various social networks interoperable in contrast to Facebook and Twitter, where content is platform-specific. The fediverse provides stability and control to users. Learn more here.

Commodity trading is regulated by the CFTC to mitigate fraud and risk

Established in 1974, the CFTC regulates these markets (including swaps, futures, and certain types of options) to protect market participants from fraud, ensure fair trading conditions, and generally reduce financial risk.

Ten people on Goldman Sachs’ 31-person senior management committee are women

However, only two of those 10 women were in charge of a revenue-generating business arm. Learn more about what it’s like to be a woman in investment banking—and about Goldman’s recent gender discrimination settlement.

Who are the people standing on the floor of the NYSE?

Today, not all of the trading is done on the floor of the New York Stock Exchange itself (computers help now), so it isn’t as chaotic as it once was. However, the NYSE is one of the few remaining trading floors where much active trading still happens in person.

The S&P 500 selection committee has strict rules around adding a company to the index

While the decision to add a company to the index is ultimately up to the selection committee, any prospective company has to meet some criteria to be considered. To join, the company must have been profitable for the last four quarters, must have a market capitalization exceeding $22.7B, and meet certain requirements around tradeable stock availability (or float).

There are 6 primary governing bodies at the UN

The United Nations is structured around six main bodies: the General Assembly, Security Council, Economic and Social Council, Trusteeship Council, International Court of Justice, and Secretariat. Each plays a distinct role in promoting peace, justice, and cooperation worldwide.

One in five Americans has an error on their credit report, according to the Federal Trade Commission

In 2026, four US senators sent letters to two of the nation's major credit bureaus (TransUnion and Experian) after an investigation revealed that they were fixing fewer errors on consumers' credit reports.

Master the banking basics

Before deciding on a credit union, it’s important that you understand the basics. That way you can know exactly what’s happening with your hard-earned money behind the scenes. Flip through these flashcards to make sure you understand key terms like “deposit” and “checking account.” Then, you can read up on top banking products and start to find a credit union that works for you. Click here, then scroll down the page to find the cards.

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

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.

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

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

The first steps to rebuilding your credit score include getting to know exactly what's on your credit report and figuring out how far you are from the '700 club,' or 'good score' range.

The price of gas is a composite made up of several different factors, with the federal gas tax making up less than 20% of what drivers pay at the pump.

The Nasdaq's 'Magnificent 7' companies are responsible for roughly 40% of the Nasdaq 100 index's gains, while the remaining 93 companies account for the other 60%.

Before the current East Wing ballroom project, only two White House renovations in the past 100 years cost more than $10M.

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

The hormonal disorder PCOS was renamed PMOS in 2026, a move designed to improve care and research by shifting the focus to the hormonal causes of this condition that affects 1 in 8 women.

Memecoins are a type of cryptocurrency—a form of digital currency with a wide variety of uses—created around popular 'memes,' or viral internet jokes.

One disco producer saw 'Star Wars' four times on its opening weekend and was so inspired that he recorded the album 'Star Wars and Other Intergalactic Funk,' which produced a chart-topping single.

View the ten deadliest tornadoes in US history.

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.

Crows are believed to have intelligence on par with a seven-year-old child and demonstrate complex behaviors, from problem-solving with tools to recognizing human faces.

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

Fish populations in the Great Barrier Reef have increased after installing waterproof speakers on the ocean floor that played recordings of sounds from healthy coral reefs.

After her fellow cult members tried to kill her with an LSD-infused hamburger, one member of the Manson Family, the murderous cult led by Charles Manson, decided to testify against the group's leader.

Bone marrow (soft tissue found inside certain bones) generates roughly 500 billion new blood cells each day

Ebola is a filovirus, meaning it resembles a thread under a microscope, though it sometimes twists and can resemble a bowl of spaghetti.

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

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.