Federal Reserve Board

Definition: The Federal Reserve Board, also know as the “Fed,” controls the nation’s interests rates by setting the key rates. Alan Greenspan has headed the Fed for many years. When he sneezes the market gets a cold, is an old Wall Street saying. Any change in interest rates will have a dramatic effect on the markets if it was not anticipated. Raising and lowering interest rates is analogous to turning up or down the heat while cooking.