Read Time: 3 min 35 sec

BREWING QUESTIONS

WHAT YOU’RE ASKING

What is the Federal Reserve?

The Federal Reserve (AKA “the Fed”) is the U.S.’s Central Bank, or main monetary authority.

It’s the bank for America’s banks, tasked with keeping the economy healthy and stable by setting monetary policy, controlling money supply, and setting interest rates.

Right, but what is it?
There are three parts:

1. Board of Governors: Seven Governors appointed by the president and confirmed by the Senate to staggered 14-year terms. They give monetary direction (e.g., inflation should be 2%), regulate banks, and report to Congress on the economy’s status.

2. 12 Regional Banks (see map): They monitor regional economic conditions, ensure local compliance with regulations, and operate the nation’s payment systems (think electronic funds transfers).

3. Federal Open Markets Committee (FOMC): A committee that sets interest rates; it’s made up of the Governors and some of the Regional Bank presidents.

You mentioned controlling the money supply…?
Yep, the Fed can create (and destroy) money.

The U.S. Treasury actually prints physical money, but it does so at the Fed’s direction. The central bank also creates money digitally by “purchasing” government bonds from banks with money that previously didn’t exist. The banks sell the Fed a bond, the Fed credits the bank with more reserves, and poof more U.S. currency is born.

So, it just creates more money?
Sometimes, but not always, because creating more money causes inflation.

The Fed has a “dual mandate” from Congress: keep employment high and inflation low. It does this by balancing the money supply and moving interest rates, but the two goals are in conflict:

• Lower interest rates → more spending → economic growth → more jobs → higher inflation

• High interest rates → less spending → economic decline → layoffs → lower inflation

What does it mean that the Fed is “independent”?
It’s a government agency that can make policy decisions against the will of Congress and the president, protecting Fed Governers from being fired in all but the most extreme cases (it’s never happened).

The goal is to insulate the Fed from short-term political pressure that may cause long-term economic harm. But having a massively powerful agency with minimal accountability also creates problems, and has gained the central bank many critics. Learn more about that in today’s TPO Explains podcast episode.

__

CHRISTIAN PERSPECTIVE
Money is usually on everyone’s mind, and often not for good reasons. Whether you’re thinking about federal monetary policy or personal finances, remember that these are fleeting things. Surrender anything you do have; it’s the Lord’s anyway, and trust Him with everything you feel you don’t have. 

“Keep your life free from the love of money. Be satisfied with what you have, for he himself has said, ‘I will never leave you or abandon you.’ Therefore, we may boldly say, ‘The Lord is my helper; I will not be afraid. What can man do to me?’” 
Hebrews 13:5–6 (CSB) (read full passage)

FROM OUR PARTNERS 🤠

Healthy Aging, Discovered by Dolphins

While caring for aging Navy dolphins (no, not dark blue bottlenoses—actual four-flippered veterans), veterinarians noticed something surprising… the healthiest dolphins all shared higher levels of a foundational nutrient: C15:0.

Fast forward a decade and over 100 peer-reviewed studies, and researchers now know that C15:0 plays a key role in healthy aging for humans, too. 

Fatty15 is an award-winning, pure C15:0 supplement designed to strengthen cell membranes and protect against age-related breakdown, delivering 36+ cellular benefits across metabolic, cognitive, liver, immune, and red blood cell health. In a survey of 6,243 customers, 70% reported benefits within 16 weeks. Thanks, dolphins!

The Pour Over readers save an extra 15% on a three-month subscription here!

Curious how we choose sponsors?  Learn more  |  Advertise with us

WHAT YOU’LL ENJOY

Testing your deductive skills by trying to pinpoint the date and location of these photos.

A lightning round of “Which one is cake?”

Homeschool curriculum that connects families. Founded by TPO reader Jennifer P., The Peaceful Press provides Pre-K through middle school curriculum and resources to educate, inspire, and bring joy to children, while providing peace to parents. Get your free Lent reading plan!*

*This is a free promo for a TPO-reader-owned small biz. Have your own small business you want us to know about? Fill out this form!

WHAT YOU’VE BEAN CLICKING…

Top News Article: Audience reviews of FLOTUS’s new documentary, Melania.

Top Christian Perspective: A reminder for Christians discussing divisive topics. Download and save it here!  

Top Whipped Cream: Ya’ll really enjoyed this video of a duct getting cleaned.

WHAT WE’RE RECOMMENDING

How We’re Taking the Target Off Our Digital Backs
With Incogni*

Unknown number calling? It’s not random…

Scammers know exactly who they’re targeting. They buy your personal info (your phone number, your email, even details about your lifestyle) from data brokers. Once your data’s out there, you’re not just getting spam calls… you’re more susceptible to phishing, impersonation, and even identity theft. 

Thankfully, there’s Incogni. It’s a data removal service that wipes your personal info from every corner of the web—both currently and as new risks pop up. 

You can’t stop scammers from existing, but you can make sure they can’t target you. Try Incogni today and get 55% off annual plans with the coupon code POUROVER.

WHAT WE’RE PRAYING

King of Creation, the nation’s economy sits far outside the realm of what we can control. We long for security, but we cannot guarantee it. We crave certainty, but it eludes us. We seek after prosperity, but it’s fickle.

But You need nothing from anyone. All things come from You—the cunning and skill to make wealth and the wealth itself—and all things are owed to You.

Grow our faith when we’re tempted to use money to avoid dependence on You; win our affection when our hearts prize earthly treasure; convict us when we’re tight-fisted and ungenerous with Your gifts. With You there is peace and contentment and eternal treasure. Amen.

This prayer is adapted from Praying the News, a Sunday newsletter from The Pour Over. Want more timeless truth to help you process current events? Sign up here to pray with us.

(You’ll still get our M/W/F news)