hherwig hherwig
  • 08-02-2017
  • Business
contestada

What is the goal of the Fed’s Monetary Policy?

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gogirl39 gogirl39
  • 08-02-2017
to promote “maximum” sustainable output and employment and to promote “stable” prices.
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girardm
girardm girardm
  • 31-01-2021

Answer:

The goal of the Fed's Monetary Policy is to maintain sustainability; they want the unemployment rate to stay between 4% and 6%, and for the inflation rate to stay near 2%, and they do this by either increasing their funds rate to reduce inflation and increase unemployment, or by decreasing their funds rate in order to increase inflation and decrease unemployment. 

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