The Economy's Referee

Central banks are the most powerful economic institutions most people never think about. The Federal Reserve, European Central Bank, and Bank of Japan together shape trillions in economic activity. The Fed's balance sheet alone peaked at roughly $9 trillion in 2022 — a pile of assets bigger than the entire yearly output of every economy on Earth except the US and China.

Their primary mission is maintaining price stability while supporting employment. They accomplish this by controlling interest rates, regulating banks, and acting as lenders of last resort when financial systems face collapse.