Archives April 2024

Monetary Policy and Economic Stability: The Fed’s Tools for Managing Growth

Monetary policy and economic stability

The Federal Reserve (Fed) plays a pivotal role in maintaining the stability of the U.S. economy through its control over monetary policy. One of the Fed’s primary tools for ensuring economic stability is its ability to adjust interest rates, which in turn influences inflation, employment, and overall economic growth. By managing these factors, the Fed can help guide the economy through periods of recession and expansion, while aiming to maintain a balance that supports long-term economic health

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