AUE hits 34m @ 2.32g/t gold from 56m @ Boundiali BD tenement

Tackling soaring inflation in the US is the job of the country’s central bank, known as the US Federal Reserve, or the Fed.

The US Fed has consistently made headlines in recent years due to its role in managing inflation through the use of interest rate changes.

Between mid-2021 and 2023, the US economy experienced high inflation, peaking at 8.5 percent in July 2022. The Fed has helped bring it largely under control through careful interest rate increases during that time period.

According to US Labor Department data, the inflation rate in July 2025 was 2.7 percent. As this is still above the Fed's target of 2 percent, the bank has been slow to lower interest rates so far.

It's important for any investor to understand the ins and outs of the Fed's role in US monetary policy and interest rates, as its decisions have a strong impact on US and global markets as well as precious metals prices.

Here the Investing News Network provides investors with insight into what the Federal Reserve and FOMC are, the Fed's role in US monetary policy, why it raises and lowers interest rates and more.