Question

The Federal Reserve Board under the direction of Janet Yellen had kept interest rates at amazingly...

The Federal Reserve Board under the direction of Janet Yellen had kept interest rates at amazingly low levels. What are the benefits and consequences of taking on such action? Do you feel the policy of the Fed raising rates is correct? What are the benefits and consequences of this action? Include in your answer issues as interest rate stimulus, inflation, money supply. Finally state your opinion of whether Janet Yellen and the Fed are correct with current policies correct

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Over the past several years, the Federal Reserve has kept interest rates very low. Discuss the...
Over the past several years, the Federal Reserve has kept interest rates very low. Discuss the policy the Federal Reserve is following and the reasons for this policy given the conditions in the economy. What are the risks of keeping interest rates very low? How do you think the low interest rates have affected saving in the economy?
How does inflation factor into the Federal Reserve raising or lower interest rates?
How does inflation factor into the Federal Reserve raising or lower interest rates?
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a...
1. The Federal Reserve Act says that the Fed must try to achieve​ ______. A. a balanced budget B. maximum​ employment, stable​ prices, and moderate​ long-term interest rates C. a stable U.S. dollar on foreign exchange markets and moderate​ long-term and​ short-term interest rates D. an economic environment in which investment in U.S. stock and money markets is encouraged The Federal Reserve Act says that the Fed must use​ ______ to achieve its objectives. A. bank reserves B. commercial banks...
) In the past, the Federal Reserve didn’t pay interest on reserves kept in Federal Reserve...
) In the past, the Federal Reserve didn’t pay interest on reserves kept in Federal Reserve banks. For an ordinary U.S. bank, money kept at the Fed earned zero interest, just like money stored in a vault or in an ATM. In 2008, the Fed started paying interest on deposits kept at the Fed. Briefly explain all your answers. Once the Fed started paying interest, what would you predict would happen to the demand for reserves by banks: Would they...
Current monetary policy Go to the Web site for the Federal Reserve Board of Governors (www.federalreserve.gov)...
Current monetary policy Go to the Web site for the Federal Reserve Board of Governors (www.federalreserve.gov) and download the most recent monetary policy press release of the Federal Open Market Committee (FOMC). Make sure you get the most recent FOMC press release and not simply the most recent Fed press release. a. What is the current stance of monetary policy? (2018)(Note that policy will be described in terms of increasing or decreasing the federal funds rate as opposed to increasing...
The Federal Reserve has kept interest rates low to encourage borrowing. Why have consumers not spent...
The Federal Reserve has kept interest rates low to encourage borrowing. Why have consumers not spent more money despite low interest rates?
Explain how the Federal Reserve’s lowering of interest rates affects the following variables in the short...
Explain how the Federal Reserve’s lowering of interest rates affects the following variables in the short run: household consumption, business investment, real GDP, and the price level. Insert or attach a well-labeled Aggregate Demand/Aggregate Supply graph that would illustrate the effect of a cut in interest rates. What is one macroeconomic problem that could cause the Federal Reserve to become aggressive in raising interest rates? Explain. Describe one issue that could cause the Fed to lower rates? Define the “federal...
The Federal Reserve will increase interest rates to: a. give higher returns to those who invest...
The Federal Reserve will increase interest rates to: a. give higher returns to those who invest in the stock market. b. slow down the rate of inflation (economy). c. speed up the economy. d. All of these selections are correct e. None of these selections are correct
The Federal Reserve has a dual mandate of full employment and price stability. Oftentimes this mandate...
The Federal Reserve has a dual mandate of full employment and price stability. Oftentimes this mandate is challenging as there is a short term trade-off between unemployment and inflation. From 2008 to 2015, however, inflation was consistently below the target rate while unemployment was well above its natural level. Should the Fed have pursued a more aggressive monetary policy to raise inflation and lower unemployment? Choose one from below and state which school of economics your answer is subscribing. Then,...
Current Federal Reserve policy focuses on interest rates, rather than on monetary aggregates, because ________. A)...
Current Federal Reserve policy focuses on interest rates, rather than on monetary aggregates, because ________. A) monetary aggregates do not provide clear or consistent signals to guide policymakers B) open market operations affect interest rates more directly than they affect monetary aggregates C) accor ding to the Fisher effect, the interest rate is a key determinant of the inflation rate D) all of the above E) none of the above