Question

6.   Does the Federal Reserve have too much power? Did they overstep their authority in the...

6.   Does the Federal Reserve have too much power? Did they overstep their authority in the ways that they have dealt with the problem?

7.   What is your opinion of “moral hazard” concerns? 8. What “safeguards” have been put in place since the 2008 crisis? Should they be relaxed, today?

Homework Answers

Answer #1

Answer 6.

Federal Reserve has too much power and they use that power in order to protect interests of consumers in the economy and to see if the economy is working smoothly or not and if there is any change in policy needed. Sometimes the Federal Reserve does overstep in order to make the economy run significantly. For e.g., during the time of financial crisis the Fed had to take some major steps bring the economy back. To control the high inflation and unemployment in the economy the Fed oversteps its authorities in order to deal with them.

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