Key Words: Money Supply, Money Multiplier, Monetary Policy, Federal Funds Rate, Discount Rate, Reserve Requirement, Open...

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Key Words: Money Supply, Money Multiplier, Monetary Policy, Federal Funds Rate, Discount Rate, Reserve Requirement, Open Market Operations, Taylor Rule. In recent testimony in Congress, Mr. Jerome Powell, Chairman, Board of Governors, Federal Reserve, said, "Over coming months, we will be looking for compelling evidence that inflation is moving down, consistent with inflation returning to 2 percent. We anticipate that ongoing rate increases will be appropriate; the pace of those changes will continue to depend on the incoming data and the evolving outlook for the economy." You are addressing an audience of individuals not well versed in the language of economics. Please comment on the state of inflation in the US economy, discussing in the process the actions of the Federal Reserve to address the issue of inflation. Include in your discussion how federal reserve can change the money supply, and how the Federal Reserve policies can affect interest rates and inflation. Please use some of the key words above and define the key words in your comments to your audience. Key Words: Money Supply, Money Multiplier, Monetary Policy, Federal Funds Rate, Discount Rate, Reserve Requirement, Open Market Operations, Taylor Rule. In recent testimony in Congress, Mr. Jerome Powell, Chairman, Board of Governors, Federal Reserve, said, "Over coming months, we will be looking for compelling evidence that inflation is moving down, consistent with inflation returning to 2 percent. We anticipate that ongoing rate increases will be appropriate; the pace of those changes will continue to depend on the incoming data and the evolving outlook for the economy." You are addressing an audience of individuals not well versed in the language of economics. Please comment on the state of inflation in the US economy, discussing in the process the actions of the Federal Reserve to address the issue of inflation. Include in your discussion how federal reserve can change the money supply, and how the Federal Reserve policies can affect interest rates and inflation. Please use some of the key words above and define the key words in your comments to your audience.