Explain The Four Economic Goals Of The Federal Reserve To Achieve Its Monetary Policy
The Federal Reserve is an independent agency of the federal government that was established to regulate the banking and financial industry of the nation. The Federal Reserve works with Congress and with the President in an attempt to generate a positive economic environment by sustaining low inflation, creating high levels of employment, balancing international payments, and generating long-term economic growth. The Federal Reserve controls the amount of money that circulates in the economy in order to avoid inflation and deflation, and keep the balance between supply and demand. This is known as the Monetary Policy. The four economic goals of the Federal Reserve to achieve its monetary policy are Open Market Operations, Reserve Requirements,