The Federal Reserve Act mandates that the Federal Reserve conduct monetary policy “so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.” Decisions about monetary policy are made at meetings of the Federal Open Market Committee (FOMC).
Write an essay of about 300-400 words about the current monetary policy pursued by the Fed. The essay should be written as a newspaper article. In this essay, make sure to address the following points:
• How do current interest rates compare to interest rates for the past years?
• What are the factors that affected the Fed’s decisions in 2022?
• What do you expect the Fed’s policy to be for the rest of the year in 2022 and 2023?
• What might be the implications of the changes in monetary policy in 2022?
• What do you expect to happen to the economy (e.g. GDP, unemployment, inflation, housing market) in the next few years?
