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Fin100

In: Business and Management

Submitted By janetl02
Words 808
Pages 4
The US financial markets have significant bearing on the US economy in general, businesses and individuals. First, the US financial markets are typically related health wise to the overall economic condition in the country. While the market has a bearing the overall health of the economy impacts the financial markets more. If business is growing and expanding and jobs are plentiful the economy generates money which creates profit which means people want and have money to invest to grow the economy and the financial markets come along. With regard to business one of the best ways for companies to obtain capital is through the financial markets. This could include everything from bank loans based on the current interest rates or it could include cash infusion in the form of equity obtained through the issuance of shares in the stock market. Finally, individual are effected as they are investors and when the economy grows so too does the financial markets including stock markets which directly relate to individual wealth.

The Federal Reserve is a bank that is designed to be independent of the federal government while still existing within the federal government. It has oversight from Congress and has a Chairperson that is appointed by the President of the United States. The goal of the Federal Reserve is threefold including maximizing employment, maintaining stable prices and maintaining a moderate long term interest rate. All of these components play a role in the economy in terms of monetary policy and how much money is available for circulation within the economy. The Federal Reserve Chairperson is the person who is responsible for overseeing the Federal Reserve Bank and it’s interest and serves as the direct lead responsible for making decisions as it relates to the nations monetary policy. The Board is composed of individuals who each oversee one of

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