Question

Provide a critique of the Federal Reserve policy actions over the last year. Do you agree with its decisions? Explain.

Answer 1

I more or less agree with the Federal Reserve policy actions over the last year. Probably that is the reason why the economy performed exceptionally good, along with employment figures, and benign inflation, stock markets gained massively.

The Federal Reserve's existing policy framework is the result of decades of learning and refinement and has allowed it to effectively pursue these two goals for policy, known as the dual mandate. With both employment and inflation near the Federal Reserve's objectives, Fed has decided to keep the interest rates unchanged at 1.75%. Inflation figures were not too bad as well, hovering round 2% ( which is the goal of Federal Reserve ) at 2.3% at the end of 2019.