A New Frontier: Monetary Policy with Ample Reserves (Page One Economics)
Teachers: Please note that some of the content in this article is outdated. For updated information, please use How Does the Fed Use Its Monetary Policy Tools to Influence the Economy?.
The Federal Reserve conducts the nation’s monetary policy to promote maximum employment and price stability through the federal funds rate. The May 2019 issue of Page One Economics reviews the previous framework for monetary policy, and then describes the Federal Reserve’s new strategy for influencing the federal funds rate and the broader economy.
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