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The Federal Reserve is central to the U.S. economy today, and it’s controlled by just 12 people. Its monetary policies can lower inflation or even spark a recession. The central bank says it’s dedicated to achieving its goals set by Congress to maximize employment and maintain price stability, but some of its decisions like raising interest rates are not always popular with Americans. WSJ explains how the Fed became the power it is today and why it plays such a major role in the country. 0:00 Economic policies 1:02 The Fed’s creation 2:59 The FOMC’s creation 4:11 Great Inflation 6:18 Great Recession 8:07 Covid-19 News Explainers Some days the high-speed news cycle can bring more questions than answers. WSJ’s news explainers break down the day's biggest stories into bite-size pieces to help you make sense of the news. #Fed #Economy #WSJ