Title: 📈The Fed’s New Monetary Policy Tools
Course: Texas Personal Financial Literacy & Economics > Section: Unit 2: Macroeconomics

The Federal Reserve uses its monetary policy tools to achieve its Congressional mandate—maximum employment and price stability. However, its tools have changed. Prior to 2008 the Fed used open market operations as its primary tool for adjusting the federal funds rate. Today, the Fed uses interest on reserve balances as its primary tool. Learn all about the Fed’s new tools and the way it uses them to move the economy toward maximum employment and price stability.