Accepted Answer

The Federal Reserve affects the economic and financial decisions of virtually everyone--from a family buying a house, to a business expanding its operations, to a consumer choosing a sound financial institution. In the global economy, the Federal Reserve's actions have significant economic and financial effects around the world.

Federal Reserve policies seek to help people and businesses by fostering a sound banking system and a growing economy, with maximum sustainable employment and stable prices. The Fed's monetary policy actions affect the overall level of prices, economic growth, and employment in the country. Monetary policy cannot target specific industries or regions within the country.

The Fed influences short-term interest rates in the economy to achieve its goals of stable prices, maximum sustainable employment, and steady economic growth.
      
http://www.frbsf.org/publications/federalreserve/fedinbrief/myths.html