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What the Federal Reserve is, in plain English
The Federal Reserve is the central bank of the United States. It influences interest rates and the supply of dollars. It does not set the price of your Gold Eagle.
The Federal Reserve is the central bank of the United States.
For a person with coins in a drawer, you only need this: it influences how many dollars there are and what it costs to borrow them.
What it does that touches you
It sets a target for short-term interest rates. It buys and sells government securities as part of that work. The notes in your wallet say Federal Reserve Note. When people say “the Fed printed money,” they usually mean the Fed expanded bank reserves. The result is more dollars in the system, or fewer.
What it does not do
It does not set the gold price. Markets do. Spot. COMEX and LBMA. It does not grade your coins. It does not make a Silver Eagle worth a dollar. Face value.
Why coin people talk about it
If people expect more inflation, they often buy metal. If rates rise, some of them sell. That shows up as a line at a shop. Inflation and pocket change. Should you sell. Panic buying. 1971.
More on the coin and money library.