Federal Reserve

The Federal Reserve is the US central bank, built in 1913 after the 1907 bank runs were stopped by one banker. It sets the price of money, and its chair, once confirmed, cannot be removed for a decision, which is why one Fed headline moves bonds, the dollar, gold and stocks at once.

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In MochaLearnSee how the Fed moves US markets in MochaLearn
  • US TreasuryThe US Treasury is the government's borrower and the oldest name on the US market map: it issues bonds to cover the…
  • Debt ceilingThe debt ceiling is the cap Congress sets on total US government borrowing. The Treasury borrows the gap between…
  • Quantitative tighteningQuantitative tightening is the Fed shrinking its balance sheet by letting bonds mature without replacing them…
  • Quantitative easingQuantitative easing is the Fed buying Treasuries and mortgage bonds with new reserves to push long-term yields down…
  • Market cap categories (mega/large/mid/small)Market cap categories group US companies by size: mega above $200 billion, large $10 to $200 billion, mid $2 to $10…
  • Bid-ask spreadThe bid-ask spread is the gap between the best price to sell (bid) and the best price to buy (ask). Buy at the ask…

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