The Federal Reserve directs the country's monetary policy. It was established by Congress in 1913 to control the money supply and actively use policies to respond to and influence economic conditions. The Federal Reserve adjusts the interest rates banks charge for lending money to each other. The Federal Reserve is determined to keep borrowing cheap by cutting interest rates, making credit more widely available, and boosting consumer and business confidence. Conversely, the Fed may decide to raise rates when the economy is doing well or in response to inflation concerns.