Quantitative Tightening QT

  • The Role and Tools of the Federal Reserve in Influencing the Economy

    The Federal Reserve, also known as the Fed, is the central bank of the United States and is responsible for implementing monetary policy in order to achieve its dual mandate of full employment and price stability. In order to achieve these goals, the Fed uses a variety of tools to influence the economy and financial markets. One of the most important tools the Fed uses to influence the economy is interest rate policy. The Fed can adjust interest rates by raising or lowering the federal funds rate, which is the…

    January 24, 2023