Legal Definitions - FRB

FRB

FRB stands for Federal Reserve Board of Governors. It is the governing body of the Federal Reserve System, which is responsible for managing the monetary policy of the United States.

One example of the FRB's responsibilities is setting interest rates. When the economy is doing well, the FRB may raise interest rates to prevent inflation. On the other hand, when the economy is struggling, the FRB may lower interest rates to encourage borrowing and spending.

Another example is regulating banks and other financial institutions. The FRB supervises and regulates banks to ensure they are operating safely and soundly, and to protect consumers from unfair or deceptive practices.

These examples illustrate how the FRB plays a crucial role in maintaining a stable and healthy economy in the United States.