The Fed and How It Got That Way Here is a quick history of the Federal Reserve and an overview of what it does. Share | Related Content Investments You’ve made investments your whole life. Work with us to help make the most of them. How the Federal Reserve Works Each day, the Fed is behind the scenes supporting the economy and providing services to the U.S. financial system. 5 Smart Investing Strategies Getting what you want out of your money may require the right game plan.