Federal Reserve has 3primary tools to expand/contract the money supply.Which tools does the Fed use most often
359566
They can change interest rates and buy/sell bonds on the open market.  I don't remember the last.  They probably use bonds the most often because the government uses that to finance itself.
87500
I can give you only 2.\n\n1) Geopolitical (Iran)\n2) The FOMC recently indicated they may have to continue raising interst rates in the US.\n\nthose are the only two I can say.
329474
it's based on demand/supply of the money. It can also be determined by government policy, like when euro first come out.
75141
Trade station is what many of us use. Check it out.\n\nhttp://www.tradestation.com/default_2.shtm
873488
Article I of the US Constitution gives Congress the power "To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures."\n\nThey oversee the treasury and decide how much money to print with the assistance of the US Treasury Department.  This is done based upon economic forecasts, the value of the dollar verses other currencies and the need for the money.  They may want to print more money to create inflation (which lowers unemployment) or limit the money to create savings.\n\nThey also print money to compensate for the money that is being constantly taken out of circulation (you trade in a ripped dollar at a bank and they destroy it and print a new one to replace it).\n\nThe Federal Bank handle fiscal policy (such as interest rates and borrowing guidelines), not monetary policy (how much to actually spend).
1096616
Which interest rate?  There's the effective fed funds rate at the top and the daily data there.  If that's not it, there are plenty more to choose from.\n\nThe full data are here: http://www.federalreserve.gov/releases/h15/data.htm
253529
To make this question answerable, let's make a simplification and ask, "How much money is there in the United States?" Since the statistics for the U.S. are easy to come by, we can look at it in a couple of different ways. \n\nThe first way to look at it might be, "How much cash is there in U.S. currency?" If you took all the bills and coins floating around today, how much money is that? According to the Federal Reserve, the current number is very close to half a trillion dollars. That sounds like an incredible amount, but think about it this way: In 1990, there were about 250,000,000 people in the U.S. If you took all the cash and divided it up equally, each person would only get about $2,000. Obviously there is more money floating around than that. \n\nThe rest of the money is held in various types of bank accounts, and the Federal Reserve tracks these funds in three different values: the M1, M2 and M3 money supplies: \n\n- M1 is all of the currency, plus all of the money held in checking accounts and other checkable accounts, as well as all of the money in travelers checks. In September 1999, the M1 money supply was about $1,100 billion. \n- M2 is M1 plus all of the money held in money market funds, savings accounts and small CDs. In September 1999, the M2 money supply was about $4,600 billion. \n- M3 is M2 plus all of the large CDs. In September 1999, it was about $6,250 billion. \n\nSo if you wanted all of the money in the United States, what you would ask for is M3 -- and you would get about 6 trillion dollars! How much money is that? It's a lot... But if you look at the U.S. federal budget for 2000, you will see that it is only enough money to run the U.S. federal government for a few years. Shame...\n\nThat is about as much as I know. Like one of the previous guys said, money transactions are made every second, and more money are also coined (manufactured) every second. So, at this point in time, it is impossible to know the amount of money in the world. Maybe later...
651958
Check out the website of The Federal Reserve Board.\nThe agency charged with designing and implementing the federal monetary policy -- such as how much money to put into circulation:\n\nhttp://www.federalreserve.gov/faq.htm
694901
As one of my finance professors so clearly stated it... "In God We Trust".  It is on every piece of paper and coin in the US.  There is no backing or "gold standard" of the almighty dollar anymore.  It is really just a highly accepted form of trade for a common tool for bartering.
318160
Go to\n\nhttp://woodrow.mpls.frb.fed.us/info/policy/#policy\n\nUnited States Monetary Policy\n\nWhat is Monetary Policy? | Instruments of Monetary Policy\nMonetary Policy Indicators | Federal Open Market Committee (FOMC)\nFOMC Minutes | FOMC Dates | Monetary Policy Objectives\nMonetary Policy Links\nMonetary Policy\n\nMonetary policy is a central bank's actions to influence the availability and cost of money and credit, as a means of helping to promote national economic goals.\n\n    * Monetary Policy, via Board of Governors\n      Monetary policy is made by the Federal Open Market Committee, which consists of the Board of Governors of the Federal Reserve System and the Reserve Bank presidents.\n    * Monetary Policy and the Economy, via Board of Governors\n    * U.S. Monetary Policy: An Introduction, via FRB San Francisco\n    * Comparative Central Banking and the Politics of Monetary Policy, remarks by Governor Laurence H. Meyer, May 21, 2001\n    * Technology, Macroeconomics, and Monetary Policy,\n      remarks by Federal Reserve Vice Chairman Roger W. Ferguson, Jr., December 6, 2000\n    * Challenges for Monetary Policymakers, remarks by Federal Reserve Chairman Alan Greenspan, October 19, 2000\n    * The Politics of Monetary Policy: Balancing Independence and Accountability, remarks by Governor Laurence H. Meyer,\n      October 24, 2000\n    * The Strategy of Monetary Policy, remarks by Alan S. Blinder, vice chair of the Board of Governors of the Federal Reserve System, The Region, Sept. 1995\n    * The Strategy of Monetary Policy,\n      remarks by Governor Laurence H. Meyer, March 16, 1998\n    * Formulating a Consistent Approach to Monetary Policy,\n      1995 Annual Report essay \n\nInstruments of Monetary Policy\nOpen Market Operations\n\n    * Fedpoint: Open Market Operations, via FRB New York\n    * Understanding Open Market Operations, via FRB New York\n    * Federal Open Market Committee (FOMC)\n    * Shadow Open Market Committee (The Region, June 1993)\n\nDiscount Window\n\nWhen the Federal Reserve System was established in 1913, lending reserve funds through the discount window was intended as the principal instrument of central banking operations. Although the window was long ago superseded by open market operations as the most important tool of monetary policy, it still has a complementary role in the day-to-day implementation of policy.\n\n    * Discount Rate — current and historical\n    * Fedpoint: The Discount Window, via FRB New York \n\nReserve Requirements\n\n    * Components of the Reserves Market\n    * Current Reserve Requirements of Depository Institutions\n    * Fedpoint: Reserve Requirements, via FRB New York\n\nMonetary Policy Indicators\nMonetary and Credit Aggregates\n\n    * M1 - Measure of the U.S. money stock that consists of currency held by the public, travelers checks, demand deposits and other checkable deposits including NOW (negotiable order of withdrawal) and ATS (automatic transfer service) account balances and share draft account balances at credit unions.\n\n      M1 Money Stock - Not Seasonally Adjusted — 1959 - present,\n      via FRB St. Louis\n      M1 Money Stock — 1959 - present, via FRB St. Louis\n\n    * M2 - M1 plus savings accounts and small denomination time deposits, plus shares in money market mutual funds (other than those restricted to institutional investors), plus overnight Eurodollars and repurchase agreements.\n\n      M2 Money Stock - Not Seasonally Adjusted — 1959 - present,\n      via FRB St. Louis\n      M2 Money Stock — 1959 - present, via FRB St. Louis\n    * M3 - M2 plus large-denomination time deposits at all depository institutions, large denomination term repurchase agreements, and shares in money market mutual funds restricted to institutional investors.\n\n      M3 Money Stock - Not Seasonally Adjusted — 1959 - present,\n      via FRB St. Louis\n      M3 Money Stock — 1959 - present, via FRB St. Louis \n\nShort- and Long-term Intere
972811
this is tricky it is the federal bank, but they can only print money if the congress ask them to.  in simple terms the congress bowers 1 billion. the feds keep a log and then print the money.  and give it to the congress which in tern gives to the people they owe.  \nnow here is where it gets tricky. \njoe somebody goes up for a bank loan.  the bank ask him for all his information.  the bank decides to give a loan out to joe somebody. \nnow pay attention here\nthe bank ask the feds or commercial bank or world bank or a really big bank for a loan.  The big bank says I will loan you 100 dollers for every two dollers of a monthly average of the total balance in your accounts.  so the bank totals all their custermers accounts say it adds up to 2 billion they can get a loan of 100 billion at a fix rate of about 3.75 percent (as of today the fed rate changes now and then)  then the bank gives the money to joe somebody.  and collects anywhere from 6.5 - 22 percent.\n\n\nNow when the congress ask the fed for money the inflation goes up to a ratio of the amount of money they ask for and how much money is in circlation.  \n\nat that is where U.S. money comes from world money is simular.\n\nhope this helps\n\n-David-
285669
Most speculation is that the Federal Reserve will raise interest rates one or two more times.  This is the amount banks charge other banks to borrow money.\n\nThe bond market tends to be more liquid and more variable about what rates are and react to changes in the economy much faster.  It tends to be unpredictable so I can't answer where it is going.  Lately interest rates have been going up.\n\nAnother answer that says as long as the US is spending more money than it receives, interest rates will rise, is also largely true.
974598
The Federal Reserve has the power to mitigate the effects of inflation by adjusting its monetary policy. For example, they can sell government securities and raise interest rates (which would decrease the money supply, thus curbing inflation).
169743
The federal Reserve is designed to set aside a certain amount of monewy so that people wont withdraw all their money and the banks fail. Before this banks failed all over the country. It used to be insured for 1oo,ooo dollars but im sure its more now, That way indiviual account holders felel secure and trust the bank and the bank then invwst without fear of sudden failure and all account holders trying to withdraw all their money at once. Good luck
313562
the answer to this is "probably" Mortgage rates are helped by a friendly Fed and the Federal Reserve is less likely to meddle in politics by doing any changing during an election cycle.  Better yet are the chances of no rate changes, however, due to the negative bend the Fed has been on for almost two years now, even a neutral stance would be great for all of us!
46783
Only the Federal Reserve can authorize the creation of new money.  Today, however, most money is 'created' using open-market operations, and thus does not physically exist.
1187027
4. The Fed...they control the monetary policy of the country, or how much money is in the market.  By controlling interest rates and how much money is printed at any given time, this has a great affect on how much people pay for loans and the value of the dollar.\n\n1. The President not only implements the budget and policy, but he also gets to appoint governors of the Fed Board and also other economic advisors.  Even if Congress passed a budget, he or she would not have to spend the money.\n\n2 & 3.  Congress passes the budget and has the ultimate power of the purse.  While government spending is a fraction of the GDP, it is still a large share and the amount of money people pay in taxes is less money for the market.  Also, a large national debt could crowd out private borrowing, in turn jacking up interest rates.  We'll just put the Senate in this answer since they are part of Congress.\n\n5.  The media has no control over the economy, but they have the ear of the people.  By spinning or telling stories of how well or poorly the economy is doing, this could in turn influence people's spending patterns.\n\n6. Foreign powers have very little to do with the economy, as the GDP is measured by the domestic production levels.  One thing foreign powers can do is regulate the cost of goods if we import something important from a country, but that effect is limited and often not as shocking as a domestic price jacking.