What Does the Federal Reserve Do?

January 19, 2023 Beginner
The Federal Reserve, or the Fed, is an important and influential part of the U.S. economy, and its role is explained further in this video.
Transcript Open new window

Get Schwab's view on markets and economy.

Congress Scrambling to Avoid Government Shutdown

Historically, government shutdowns have not caused a major reaction in the markets. But shutdowns can increase market volatility, and an extended shutdown could have an impact on the overall economy.

Opening Market Update

Although stocks rebounded slightly overnight, Wall Street is on pace for its worst week since March. Treasury yields and crude oil prices remain elevated, and concerns are growing over the autoworkers' strike and a possible government shutdown in October.

Stocks Tumble on Surging Treasury Yields

The major indexes fell for a third straight day as an ongoing climb in Treasury yields and the prospects for another Fed rate hike unnerved investors.

This material is intended for informational purposes only and should not be considered a personalized recommendation or investment advice. Investors should review investment strategies for their own particular situations before making any investment decisions.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Investing involves risks, including the loss of principal invested.

The information here is for general informational purposes only and should not be considered an individualized recommendation or endorsement of any particular security, chart pattern, or investment strategy.

1121-1KAN