an appropriate fiscal policy for severe demand pull inflation is
So let me get this straight: there is a severe demand pull in the U.S.
This is what the Federal Reserve’s official explanation for the recent drop in the fed funds rate did not cover.
We’ll see about that later, but the reason we’re giving this explanation is because we’re taking on the very aggressive demand pull of the Fed that’s coming in October. The Fed is now raising rates much more aggressively than expected, which is why we’re giving a $2 billion raise to the Fed.
So lets take a look at the latest federal funds rate announcement. In July the fed funds rate rose to 2.25% and a month later the fed funds rate jumped to 3.00%. The latest rate hike follows the Fed’s announcement this week that it is now cutting its target for the federal funds rate. Well, let’s see what the fed funds rate is doing now. It’s still up at 4.00%, but the fed funds rate is up 1.25 points to 4.
The fed funds rate is the Federal Reserve’s “forward guidance” rate. This rate is set by the Fed on a daily basis and is seen as a proxy for inflation, so it is the rate that the Fed will use to guide the Federal Reserve’s monetary policy. The fed funds rate is a target for the Fed which is the Fed’s main monetary policy tool.
The Fed is on its way out of the sequester, when it will be a bit of a risk for the Fed to not cut off funds. The Fed will need to find a way to cut back on its rate of interest on interest-plagued dollars, and in the event the Fed fails to do so, its rate of interest will fall.
The Fed has tried to cut rates on some of its own savings accounts like in 2009, and in 2011 the fed funds rate was cut to 2.5%. In other words, just cutting interest rates on the money that the Fed’s own members are saving. The Fed has not been able to cut interest rates on its own savings accounts (just as the Fed did not cut rates on its own money).
How much interest is in the Fed’s account? If the Fed has been cut on the money that the Feds own members are saving, then the Fed will have to cut its rate of interest. Or it will do the same with the money that the Fed owns.
The Feds have been cutting interest rates on its own money to try to prevent the economy from overheating. It’s an interesting thought experiment because they haven’t cut rates on the money that the Feds own members are saving. As a result, this means that they have to increase interest rates on the money that the Feds own members are saving. That, in a way, is what we call a fiscal policy, or a fiscal “policy of deficit.
The idea of using the money that the Fed owns as a fiscal policy is interesting as it gives the Feds more control over the economy. For example, instead of using the money that the Feds own as a savings account, the Feds could use it as a savings account.