The Conversation

The Fed and the art of purposeful inactivity

18-09-2015 Author: The Conversation USA

Her hands may be folded, but Janet Yellen is far from inactive. Reuters

The Federal Reserve is the central bank of the United States and sets monetary policy to steer the direction of the economy. Traditionally, the Fed has had three policy choices: increase its target interest rate, lower it or do nothing.

But because the federal funds rate has...

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