The Federal Reserve's role in the U.S. economy is similar to that of central banks in other countries. They all aim to control inflation and deflation, regulate interest rates, and manage the country's money supply to ensure economic stability. However, the specific methods and policies may vary depending on the country's economic conditions and government regulations.
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The Federal Reserve was created to help control inflation and deflation in the economy. It does this by regulating the interest rates of borrowed money, which alters the amount of capital that flows throughout the economy. Economic growth is stimulated when interest rates are lowered because corporations are more incentivized to borrow money for investment purposes when the money is cheaper. Alternatively, when prices rise too high, too fast, The Fed will raise interest rates to offset borrowing and slow the rising inflation costs.