Earlier this week, in a historic move, the Federal Reserve ‘broke the internet’ by lowering the overnight bank rate to 0%. To combat this fear, the Federal Reserve issued several new policies this week, which left most of us more confused than optimistic. What does the Federal Reserve do? The Federal Reserve (“the Fed”) is America’s central banking system, first created in 1913 to deal with financial panics and crises. Reserve RequirementThe Fed has now decided to pull a third and lesser known lever, and that’s the overnight reserve requirement.

Source: Forbes March 18, 2020 18:33 UTC