What is the Federal Reserve System or The Fed?
The Fed’s main purpose is to ensure a safe and stable money supply for the nation. The Fed also takes actions to keep inflation under control and promote sound economic growth. One way the Fed does this is by regulating the federal funds rate, which is the rate at which banks lend money to other banks. Changes to this rate directly affect the rates that banks offer to consumers. This is the main reason why mortgage rates go up and down over time .
