The Federal Open Market Committee is scheduled to have one of its regularly-scheduled meetings with Fed Chair Janet Yellen making an announcement on interest rate policy. Most observers expect the Fed to leave short-term interest rates unchanged for now, but the FOMC’s likely actions in the near future could be to raise rates. Dr. Tiemann reviews the […]
The Federal Reserve has a dual mandate to both maintain price stability and reasonably full employment at the same time. This differs from that of its counterparts in other countries, which focus primarily on fighting inflation. Because of this, the Fed's monetary action are often overtly counter-cyclical, raising or lowering interest rates or tightening or loosening money […]
In Nov. 2010, the Fed launched a second round of quantitative easing, dubbed the “QE2”. The action raised many questions and this note explores the possible impacts of this action on the economy. It continues the discussion started in the prior note-addressing the Government’s fiscal policies-and focuses this time on the Government’s monetary policy.