Economics Monetary Policy Questions
The role of the Federal Reserve in monetary policy in the United States is to control and regulate the nation's money supply, interest rates, and overall financial system. It aims to promote economic stability, maximize employment, and maintain price stability. The Federal Reserve sets monetary policy through various tools such as open market operations, reserve requirements, and discount rates. It also acts as a lender of last resort to banks and plays a crucial role in supervising and regulating the banking industry.