Morning Coffee Videocast: A Primer on the Federal Reserve

The Federal Reserve tries to set interest rates so as to achieve maximum employment, purchasing power, and growth while maintaining price stability--i.e., keeping inflation low. This is harder than it looks. The Federal Reserve's decisions on interest rates today affect the level of inflation two years from now. The Federal Reserve today is pondering what the economy will look like in two years, and whether two years from now it will look back on and be happy with the interest rate decisions made today.
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