![]() ![]() This balancing act requires leaders at the Federal Reserve to not only analyze complex data, but also anticipate the impact of global events and the actions of political leaders and private companies. And the measures the Fed has taken to curb inflation can also have unintended consequences, as evidenced by the threat of turmoil in the national and global banking systems. ![]() Olaf Assistant Professor of Economics Marcus Bansah. But as The New York Times noted last summer, “It is very hard for the Fed officials to get the balance right.” They are trying to cause a large enough decline in spending to reduce inflation but not such a large decline that the economy falls into a recession, says St. This, in turn, causes prices to stop rising so rapidly. To bring down inflation, the Federal Reserve has been raising interest rates, which makes borrowing more expensive and leads families and companies to spend less money. have taken aggressive measures to tighten monetary policy. That is due in large part to the fact that central banks around the world - including the Federal Reserve in the U.S. This 40-year inflation high has started to ease in recent months. ![]() Over the past year, inflation in the United States soared to the highest levels since the 1980s - and consumers felt the pinch of steeper prices everywhere from the grocery store to the gas pump. ![]()
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