Answer:
Explanation:
It is the Federal Reserve’s actions, as a
central bank, to achieve three goals specified by Congress: maximum
employment, stable prices, and moderate long-term interest rates in
the United States. The Federal Reserve conducts the nation’s monetary policy by managing
the level of short-term interest rates and influencing the availability and
cost of credit in the economy. Monetary policy directly affects interest
rates; it indirectly affects stock prices, wealth, and currency exchange
rates. Through these channels, monetary policy influences spending, investment, production, employment, and inflation in the United
States. Effective monetary policy complements fiscal policy to support
economic growth
