Question: The Fed has announced a new, lower target rate for the federal funds rate; in other words, the Fed wants to lower the federal funds
The Fed has announced a new, lower target rate for the federal funds rate; in other words, the Fed wants to lower the federal funds rate from its present level. Discuss what setting a lower federal funds has to do with Monetary Policy. Do you think this is the right thing to do, given the present economic condition due to the pandemic?
Why would lower federal funds rate translate into higher inflation?
Why would reserve requirement have to decrease? Required reserve can stay the same while federal fund rate is lowered. They are two different policies.
Also, How would this "help a lot of struggling people"?
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