Question: The Fed attempts to use monetary policy to control the level of inflation and economic growth in the U.S. Write a short essay on the

The Fed attempts to use monetary policy to control the level of inflation and economic growth in the U.S. Write a short essay on the Fed's role during the housing bubble that occurred in the 2004-2006 period just before the credit crisis. Do you think the Fed could have controlled housing prices in some way that would have prevented the housing bubble and the credit crisis? In your essay, offer your insight on the underlying reason for the abrupt increase in home prices in the 2004-2006 period.

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