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28 Sep 2019
The Fed has consistently said that it will not raise the federal funds rate any time soon. The Fedâs challenge will be how to get monetary policy back to normal over the next several years. The Fed has to make a judgment about timingâtightening too early could send the economy back into recession, as happened during the late 1930s; waiting too long would set the stage for inflation. Source: The New York Times, November 5, 2009
If the recovery continues and inflation starts to rise, what effect will the Fedâs decision to not change the federal funds rate have on the U.S. economy?
The Fed has consistently said that it will not raise the federal funds rate any time soon. The Fedâs challenge will be how to get monetary policy back to normal over the next several years. The Fed has to make a judgment about timingâtightening too early could send the economy back into recession, as happened during the late 1930s; waiting too long would set the stage for inflation. Source: The New York Times, November 5, 2009
If the recovery continues and inflation starts to rise, what effect will the Fedâs decision to not change the federal funds rate have on the U.S. economy?
Paramjeet ChawlaLv8
28 Sep 2019