The Federal Reserve (Fed) was created in 1913 to avoid bank runs. The Fed has 4 main monetary policy goals as stated in chapter 26. These are: price stability, high employment, stability of financial markets, and institutions and economic growth. It was reported that the Fed provided trillion of dollars into the economy since 2009. It is hard to tell where the money exactly went. The statistics regarding the Fed’s 4 main goals give us a better understanding where the money was allocated.
Price stability is the first goal of the Fed. The inflation rate in 2016 decreased from 3.8% in 2008 to 1.3%. Second goal is the high employment. The employment rate is not as great compare to 2000, which was 64.4%, but it is a little better than 2009
Price stability is the first goal of the Fed. The inflation rate in 2016 decreased from 3.8% in 2008 to 1.3%. Second goal is the high employment. The employment rate is not as great compare to 2000, which was 64.4%, but it is a little better than 2009