What does the Federal Reserve take into account when establishing general and specific rates of interest? Describe the recent tools the Federal Reserve has used to influence the U.S. economy, and explain their effects. In your opinion, have these measures been effective or ineffective in addressing the major concern or concerns of the business cycle?
What does the Federal Reserve take into account when establishing general and specific rates of interest?
The Federal Reserve takes into account the level of employment, the stability of the prices, and the interest rate before they establish general and specific rates of interest. Usually when the inflation rate is high the Federal Reserve increases the interest rates to reduce the money supply and control inflation. However, when ...
Federal Reserve is discussed very comprehensively in this explanation..