What it is
The Federal Reserve is the U.S. central bank responsible for monetary policy, financial stability, and the payment system.
Why it matters
The Fed influences short-term rates and financial conditions, which flow through bond yields, credit, the dollar, and equity valuations.
How it affects investors
Investors watch Fed communication to understand whether policy is becoming more restrictive, more supportive, or simply staying patient.
Related concepts
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Treasury Yields
Treasury yields influence the cost of money across the economy and reset the discount rate investors use to value future cash flows.
Inflation
Inflation shapes the path of interest rates, consumer purchasing power, corporate margins, and the valuation investors place on risk assets.
Labor Market
Labor data connects household income, consumer demand, wage pressure, and the Fed's inflation outlook.
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