Join us for a conversation with Beth Hammack, president and CEO of the Federal Reserve Bank of Cleveland, to discuss the critical functions of Reserve Banks, the state of the economy, and ways Reserve Banks engage with the public.

Despite declining numbers and growing challenges, community banks continue to play a crucial role in the banking industry.

Reducing the Federal Reserve’s expanded balance sheet, which has provided substantial policy accommodation in recent years, may take time.

Examiners in Banking Supervision conduct exams and inspections at more than 200 financial institutions in our district. This graphic describes the basics of the examination process and why supervision is one of the Federal Reserve’s key functions.

The Federal Reserve's balance sheet has undergone significant changes since 2007, reflecting its response to major economic crises. From a modest *** trillion U.S. dollars at the end of 2007, it ballooned to approximately **** trillion U.S. dollars by October 29, 2025. This dramatic expansion, particularly during the 2008 financial crisis and the COVID-19 pandemic—both of which resulted in negative annual GDP growth in the U.S.—showcases the Fed's crucial role in stabilizing the economy through expansionary monetary policies. Impact on inflation and interest rates The Fed's expansionary measures, while aimed at stimulating economic growth, have had notable effects on inflation and interest rates. Following the quantitative easing in 2020, inflation in the United States reached ***** percent in 2022, the highest since 1991. However, by August 2025, inflation had declined to *** percent. Concurrently, the Federal Reserve implemented a series of interest rate hikes, with the rate peaking at **** percent in August 2023, before the first rate cut since September 2021 occurred in September 2024. Financial implications for the Federal Reserve The expansion of the Fed's balance sheet and subsequent interest rate hikes have had significant financial implications. In 2024, the Fed reported a negative net income of ***** billion U.S. dollars, a stark contrast to the ***** billion U.S. dollars profit in 2022. This unprecedented shift was primarily due to rapidly rising interest rates, which caused the Fed's interest expenses to soar to over *** billion U.S. dollars in 2023. Despite this, the Fed's net interest income on securities acquired through open market operations reached a record high of ****** billion U.S. dollars in the same year.

Core banking services providers play key roles helping depository institutions (DIs) offer instant payments. Specifically, core providers process transactions in real time and connect DIs to instant payments system operators, upgrade customer-facing solutions, and facilitate open banking and embedded finance. As the United States implements instant payments systems, the market structure surrounding core providers may evolve, and competition between fintechs and DIs for end users may intensify.

Join us for a Fed Talk about how organizations can incorporate financial literacy into career conversations with people entering the workforce.

Graph and download economic data for Federal government current tax receipts: Taxes on production and imports: Customs duties (B235RC1Q027SBEA) from Q1 1959 to Q2 2025 about receipts, imports, tax, federal, production, government, GDP, and USA.

As the central bank of the United States, the Federal Reserve supports the effective operation of the US economy, acting in the public interest to promote the stability of the financial system.

This activity will no longer be maintained after June 16, 2025. Current lessons are available in the K-12 Classroom Activities Gallery.

This activity uses Map Viewer. ResourcesMapTeacher guide Student worksheetGet startedOpen the map.Use the teacher guide to explore the map with your class or have students work through it on their own with the worksheet.New to GeoInquiriesTM? See Getting to Know GeoInquiries.Social Studies standardsC3: D2.Civ.6.9-12 – Critique relationships among governments, civil societies, and economic markets.C3:D2.Civ.13.9-12 – Evaluate public policies in terms of intended and unintended outcomes, and related consequences.Learning outcomesStudents will be able to identify the structure and function of the Federal Reserve system.More activitiesAll Government GeoInquiriesAll GeoInquiries

The Federal Reserve Bank of Cleveland works on regional and national levels to strengthen the US economy. Learn about our responsibilities and the services we deliver.

Open banking, which allows third-party financial apps to access consumer financial data electronically and securely, relies on data aggregators to establish connections with consumers’ financial institutions and extract consumer data. Data aggregators are critical to enhancing consumer financial services and increasing competition—both among financial service providers and across payment methods. However, their role raises some concerns related to data security, data privacy, and competition.

abstract The Covid-19 crisis reinforced and consolidated a template for global monetary cooperation, aiming to keep the international financial markets functioning. At the core of the monetary system, the legal design for cooperation has changed substantially: from the central role of multilateral organizations responsible for organizing collective actions (such as the International Monetary Fund - IMF), to more flexible contractual arrangements, formalized by a network of Central Bank swaps. The management of the Covid-19 monetary impacts reveals a new Bretton Woods moment, organized in novel political and legal terms. This article argues that Law has an explanatory and constitutive role in this substantial development. The US dollar, as a global currency, is structured by a specific type of contract, the eurodollar. In times of crisis, this contract requires an international lender of last resort that provides unlimited financial support to the currency’s global uses. Only a financial institution organized as a central bank has the legal and economic capacity to perform this role - not a multilateral fund. The hierarchical network of Central Bank swaps, with the American Central Bank (the Federal Reserve - Fed) at the top, was the legal arrangement structured to support the functioning of the global financial market and its currency par excellence, the eurodollar.

A monetary policy reaction function typically describes how a central bank’s policy rate responds to changes in economic fundamentals, such as inflation and labor market conditions, and other factors. We use minute-by-minute data on two-year Treasury yields to study the market-expected monetary policy reaction function from 2004 to 2024. We find that financial markets expected monetary policy to react more aggressively to inflation news during 2022–2024 than in the pre-COVID-19-pandemic period. In addition, we find that the sensitivity of the two-year Treasury yield to economic news other than core inflation and labor market conditions has decreased over time. This time-varying sensitivity to changes in economic fundamentals may reflect an actual change in the FOMC’s reaction function, or it may be associated with the fact that market participants became more attentive to inflation news after the pandemic recession period.

A primary purpose of the Federal Reserve Act of 1913 was to prevent banking panics by establishing the Federal Reserve System to function as a lender of last resort. Other types of financial crisis require a similar response, however, and the Federal Reserve has repeatedly used its capacity to generate liquidity to insulate the economy from crises in financial markets. The Fed's response to the terrorist attacks of September 11, 2001, is the most recent example of this. This paper reviews the Fed's responses to crises and potential crises in financial markets: the stock market crash of 1987, the Russian default, and the September 11th attacks.

Graph and download economic data for 34) How Has the Provision of Differential Terms by Your Institution to Separately Managed Accounts Established with Most-Favored (as a Function of Breadth, Duration, and Extent of Relationship) Investment Advisers Changed over the Past Three Months?| Answer Type: Increased Considerably (ALLQ34ICNR) from Q4 2011 to Q1 2025 about duration, change, separations, accounts, management, 3-month, investment, and USA.

United States - Import Price Index (Harmonized System): Machines and Mechanical Appliances Having Individual Functions, Not Specified or Included Elsewhere in This Chapter; Parts Thereof; Parts Thereof was 104.00000 Index Dec 2016=100 in August of 2025, according to the United States Federal Reserve. Historically, United States - Import Price Index (Harmonized System): Machines and Mechanical Appliances Having Individual Functions, Not Specified or Included Elsewhere in This Chapter; Parts Thereof; Parts Thereof reached a record high of 106.70000 in January of 2021 and a record low of 98.80000 in May of 2017. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Import Price Index (Harmonized System): Machines and Mechanical Appliances Having Individual Functions, Not Specified or Included Elsewhere in This Chapter; Parts Thereof; Parts Thereof - last updated from the United States Federal Reserve on November of 2025.

United States - Export Price Index (Harmonized System): Machines and appliances having individual functions, not elsewhere specified or included; parts thereof was 102.60000 Index 2000=100 in August of 2025, according to the United States Federal Reserve. Historically, United States - Export Price Index (Harmonized System): Machines and appliances having individual functions, not elsewhere specified or included; parts thereof reached a record high of 136.60000 in June of 2019 and a record low of 89.90000 in August of 1994. Trading Economics provides the current actual value, an historical data chart and related indicators for United States - Export Price Index (Harmonized System): Machines and appliances having individual functions, not elsewhere specified or included; parts thereof - last updated from the United States Federal Reserve on November of 2025.

Join panelists from our Supervision, Credit Risk, and Statistics function for our May FedTalk about the Federal Reserve’s supervision role.

Graph and download economic data for Import Price Index (Harmonized System): Machines and Mechanical Appliances Having Individual Functions, Not Specified or Included Elsewhere in This Chapter; Parts Thereof; Parts Thereof (IP8479) from Dec 2016 to Aug 2025 about machines, appliances, parts, harmonized, imports, price index, indexes, price, and USA.