The Federal Reserve System

The current economic situation is considered as one of the worst economic period in the history of United States of America. Starting in the end of 2007, economic downturn has resulted into the decline in GDP level, an increase in the unemployment as well as reduction in the consumer credit due to low consumer confidence and spending. The persistent decline in the economic activity therefore attracted the attention of the Government as well as the Federal Reserve System. Government took both the fiscal as well as monetary measures in order to stimulate the economy. These events however, led Federal Reserve System or FED to intervene into the economy in order to take some measures to correct the economic situation. FED as the central bank of the country not only provided emergency support