Question

In your initial post, you are to write to either the President (on fiscal policy) or to the Chair of the Federal Reserve (on monetary policy) describing a specific policy action that you believe should be taken at this moment in time (e.g., lower taxes or buy bonds) and explain why you would take the action (what is currently happening in the economy and what will this action accomplish?).

Answer 1

As the inflation rate in the US is 1.9% for the month of march and the unemployment rate is 4% that is below the natural rate of unemployment rate of 5%. The US need to continue the existing policy of wait and watch in the market.

I will write to the Fed Chairman, asking him to keep the discount rate as it is in the market, it will lead to much needed stability and increase in the investment in the local economy, if in the coming days the inflation increased further then they can sell bonds in the market and if the demand faltered then they can buy the bonds and increase the money supply, But right now the policy will be to continue as it is going.