Question.4731 - 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.In your responses, comment on at least two posts from your peers:Compare and contrast your peers’ examples of monetary policies with yours. In your opinion, in which examples did the Fed do a better job of setting the right target for the federal funds rate? Why?Using current levels of the federal funds rate, inflation, and unemployment, make recommendations on monetary policy actions that would help maintain economic stability.
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