The Chair
Who is the current chairperson of the Federal Reserve?
Jerome Powell
What 2 actions can the Fed take to increase the money supply?
buy government securities
lower interest rates
What can happen if the Fed overuses a tight money policy?
Recession/Depression
Why would a country want a tight money policy?
control inflation
How does an increase in the discount rate or federal funds rate impact prime rates?
causes them to increase as well