What Is the Federal Reserve and Why Does It Control Global Markets?
Introduction
Few institutions wield more influence over the global economy than the Federal Reserve. When the Fed raises interest rates by a quarter of a percentage point, mortgage payments rise in São Paulo, bond yields shift in Tokyo, and Bitcoin prices react within hours. This is not coincidence — it is the architecture of the modern international monetary system at work.
Founded in 1913 following a series of devastating banking panics, the Federal Reserve was designed to stabilize the U.S. financial system. Over a century later, it has evolved into something far more consequential: the de facto central bank of the world. According to the Bank for International Settlements (BIS), approximately 88% of all global foreign exchange transactions involve the U.S. dollar on at least one side. That single statistic explains why the Fed’s decisions are the most closely watched in finance.
About Financial Cryptarch
Financial Cryptarch is the Founder of Criptocurrencie and a finance professional with over 15 years of experience in Accounting and Corporate Finance. Holding a Bachelor’s Degree in Accounting and an MBA in Corporate Finance, he focuses on cryptocurrencies, macroeconomics, global finance, and international geopolitics, helping readers understand the forces shaping money, markets, and economic power.