Question.4219 - As you learned in the module readings, the Federal Reserve controls the money supply through monetary policy actions. For this discussion, research two current or historical examples from the United States where the Federal Reserve changed the federal funds rates. The first example should be one in which the Fed raised the rates, and the second example should be one where the rates were lowered. In your initial post, analyze your examples by addressing the following: Explain in one to two sentences how the Federal Reserve sets monetary policy in the United States. Based on your first example, what happened to the inflation rate when the Fed raised the federal funds rate? Illustrate your answer with specific details from the example. Based on your second example, what happened to the unemployment rate when the Fed lowered the federal funds rate? Illustrate your answer with specific details from the example. Be sure to cite your research appropriately.
Answer Below:
The xxxxxxx Reserve xxxx monetary xxxxxx in xxx United xxxxxx by xxxxxxxxx the xxxxxxx funds xxxx which xxxxxxxxxx the xxxxxxxx rates xxxx banks xxxxxx each xxxxx for xxxxxxxxx loans xx raising xx lowering xxxx rate xxx Fed xxx control xxxxxxxxx and xxxxxxxxx the xxxxxxx With xxxxxxx to xxx first xxxxxxx where xxx raised xxx federal xxxxx rate x selected xxx article xxxxxx The xxxxxxx Reserve xxx raised xxxxxxxx rates xxxxx and xxxxxxx more xxxxx ahead xxxxxxxxx Saphir xxxx the xxx raised xxx federal xxxxx rate xx December xxx inflation xxxx slowed xx a xxxxxx inflation xxx expected xx be xxxxxxxx below xxx Fed x target xx showing xxxx the xxxx hike xxxxxx keep xxxxxxxxx in xxxxx With xxxxxxx to xxx second xxxxxxx I xxxxxxxx article xxxxxx The xxxxxxx Reserve xxxxxx interest xxxxx again xxx hints xx fewer xxxx next xxxx When xxx Federal xxxxxxx lowered xxx interest xxxxx they xxxx trying xx make xxxxxxxxx money xxxxxxx to xxxx the xxxxxxx grow xxxx though xxxx were xxxxxxxx with xxx much xxxx cut xxxxx the xxxxxxx economy xxx still xxxxx well xxxx meant xxxx the xxxxxxxxxxxx rate xxxxxx low xxxxxxx people xxxx still xxxxxxx jobs xxx rate xxxx were xxxxxxxxxx meant xx help xxxxxxxxxx areas xxxx manufacturing xxx housing xxxxx had xxxx having x tough xxxx By xxxxxx borrowing xxxxxxx the xxx hoped xx support xxxxx areas xxx keep xxxxxxxxxxxx from xxxxxx References xxxxxxxxx H xxxxxx A xxxxxxxx The xxxxxxx Reserve xxx raised xxxxxxxx rates xxxxx and xxxxxxx more xxxxx ahead xxxxx Economic xxxxx https xxx weforum xxx stories xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx The xxxxxxx Reserve xxxxxx interest xxxxx again xx but xxxxx at xxxxx cuts xxxx year xxxxxxxx NPR xxxxx www xxx org xxxx - xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxMore Articles From Macroeconomics
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