Understanding the Federal Reserve System: It is more than the cost of coffee!

Successful businesses must make accurate decisions (the same for all organiations) and that comes from understanding the financial environment. The Federal Reserve System helps encourage stability within the economy so that it maintains long term growth. Without this system we run the risk of larger boom and bust cycles (Roller coaster economy). The economy may grow more sometimes but also we can have recessions that wipe away that growth. Chaotic markets are difficult to invest in so stability has a compounded effect on long term economic prospects and attractiveness. 

Stones Coffee
A good place for digital nomads.
Escanaba is growing as an investment
and vacation destination.
The price of coffee is based on cost of 
supplies and business which
is influenced by the federal fund rate
set but the Federal Reserve

We also will also likely find some changes in the Federal Reserve processes as new technologies and updated infrastructure enhance the type of data we can collect and what we know about the economic environment. Economic theory is always evolving and new economic platforms (i.e. Digital Era/Infomation Age) found in the age after the Industrial Age and Post Industrial Age with development of AI and nanotechnologies that span the globe. (Ages can be defined by broad shifts in sociological and economic assumptions based on shifts in microtransactoins. Some will say we are moving into a new age and some will say we are not. Historical analysis often determines this from hindsight.). 

You will also notice that the Federal Reserve policy and system are set by committee members. These are often the most esteamed economists and knowledge user of our time. There has been an argument in order to avoid group think it may make sense to include other members on these boards/committess that are not from similar educational backgrounds.

Furthermore, there are 12 Federal Reserve Banks that influence regions. Consider reading the Federal Reserve System Education Piece. The main purpose of the Federal Reserve and the banks are to do the following, 

1. Conducting the nation's Federal Reserve policy.

2. Maintain stability of the financial system.

3. Supervising and regulating financial institutions.

4. Payment settling system's safety and efficiency.

5. Promoting consumer protection and community development (I'm working on economic cluster theory so this one is important to me.) 

Source: Federal Reserve System Education