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Katherine: American investors. I know it's hard to look past the Federal Reserve, but there are other central banks out there that have the ability to move markets and the European Central Bank or ECB is perhaps the most powerful, so let's break down what it is. ECB, much like the Federal Reserve is the official Central Bank of the European Union. Their main task is to ensure price stability for the 19 members states that use the common currency, which they define as an inflation rate just below 2%. That's a very different mandates than the feds, which must also focus on full employment as well as staple inflation. But the ECB has other responsibilities, too. They include defining and implementing monetary policy, monitoring and regulating European lenders and holding and managing euro foreign currency reserves, and the same way that the Fed can be held accountable to Congress, the ECB is accountable to the European Parliament. The ECB meets regularly but holds two-day rate setting meetings over six weeks. Mostly from its headquarters and Frankfurt and members include the six members of the executive board, including the president, vice president, and then there's the governors of the national central banks of the 19 euro countries, which means that in total there are about 25 members. All right, American investors, now that you understand ECB, we'll TTYL on TST.

The European Central Bank, also known as the ECB, is in the headlines on Thursday.

The ECB is expected to unveil a major stimulus package in Frankfurt that could include deeper negative interest rates and a restart of the bank's controversial quantitative easing program.


Read more here: ECB Cuts Deposit Rate To -0.5%; Resumes QE With E20 Billion in Monthly Bond Buys

With all the news, it's hard to ignore what the ECB actually is and why it's so important.

Do we have your attention yet?

In the video above, TheStreet's Katherine Ross breaks down the official central bank of the European Union and its core differences from the United States Federal Reserve.

This is something you don't want to miss, investors.

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