"The amount of money in circulation will drop, and the equilibrium interest rate will rise," when the money supply and the equilibrium interest rate if the federal reserve sells treasury securities.
On December 23, 1913, President Woodrow Wilson signed the Federal Reserve Act, which established the Federal Reserve. It is the United States' central bank, and it was established to give the country a more secure and stable financial and monetary system.
The Federal Reserve has four duties: implementing monetary policy, To ensure the banking and financial system, banks and other financial institutions are regulated and overseen. To reduce the risks associated with the financial markets, keep the financial system stable while also providing the US government, financial institutions, and the nation's payment systems with financial services.
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