Fed to Announce QE Taper in Aug or Sept on Rising Inflation Concerns The Fed is making monthly purchases of $80 billion in Treasuries and $40 billion in mortgagebacked securities. With rising consumer prices and the unemployment rate forecast to fall, the Fed is expected to announce a strategy for reducing its bond-buying program.

a. What does the Federal Reserve Act of 2000 say about the Fed’s control of the quantity of money?

b. How can changes in the Fed’s bond-buying program be reconciled with the Federal Reserve Act of 2000?