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The monetary policies of the U.S. Federal Reserve have gone through tremendous evolutions in recent decades, especially since the 2008 global financial crisis. In particular, it has intervened in most asset markets directly, and now plays a key and unprecedented role in these markets regularly. In this short course, we will provide an account of the interplay between the U.S. Federal Reserve and financial markets. We first examine the key structure, functions, and entities of the Federal Reserve System. We then discuss the objective, strategy, and tools of the U.S. monetary policies. We finally study how the Federal Reserve interacted, in its policy implementations, with different investors in various financial markets. This qualitative course aims to build the students’ knowledge set of how the Federal Reserve works, how the monetary policy decision is made, and how the policy implementation affects financial markets in general. We shall pay special attention to the current events, e.g., the Federal Reserve’s interest rate hikes to fight against high inflation since late 2021.