Question

What can the Federal Reserve do to fix the issues in the economy as explained in the article? Explain.

Answer 1

Hello. You did not inform the article to which this question refers, which makes it impossible for it to be answered accurately. However, I will try to help you in the best possible way.

The Federal Reserve System is the US central bank and to correct economic problems, it can establish monetary policies to manage inflation and stabilize interest rates, which are the most effective policies for positive control in the economy. The interest rate, in particular, is capable of charging commercial banks short-term loans that can give a positive economic boost in the short and medium term. The Federal Reserve System can also cut federal fund rates, which allows interest rates to be lower in all economic sectors.