The Cycle of Investing Understanding the cycle of investing may help you avoid easy pitfalls. Share | Related Content The Fed and How It Got That Way Here is a quick history of the Federal Reserve and an overview of what it does. 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. Contributing to an IRA? Determine if you are eligible to contribute to a traditional or Roth IRA.