Assignment 1: Discussion Question
The US Federal Reserve which acts as the central bank of the United States has the authority to regulate and examine banks and other financial institutions. They are also tasked with controlling the money supply. In accomplishing its primary focus controlling the money supply the Federal Reserve monitors and controls the discount interest rate. What are some of the factors they must consider before contemplating changing interest rates and the effects of the change on inflation on the financial markets on individuals and the economy?
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