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Monetary refers to any part of the public system for generating and circulating money through a regional or national economy. Public treasuries use monetary policy to control the money supply by setting official interest rates.

The Feds[edit]

Central banks like the U.S. Federal Reserve and the European Central Bank are the main public agencies for enacting monetary policy, which in western countries is usually aimed at holding down inflation and stabilizing the currency.[1] In the U.S. the Federal Open Market Committee[2] (FOMC) sets monetary policy at its eight regularly-scheduled meetings per year.


  1. Monetary policy definition.
  2. Federal Open Market Committee. U.S. Federal Reserve.