How Does the Fed Use Its Monetary Policy Tools to Influence the Economy?
Abstract: The Federal Reserve has a congressional mandate to promote maximum employment and price stability. The May issue of Page One Economics explains how the Federal Open Market Committee (FOMC) conducts monetary policy by setting the target range for the federal funds rate and how the Fed uses its policy tools to steer the federal funds rate into the FOMC’s target range.
Keywords: monetary policy; Federal Open Market Committee (FOMC); federal funds rate; interest on reserve balances; overnight reverse repurchase agreement facility; discount window; open market operations;
File format is application/pdf
Description: Full text
Provider: Federal Reserve Bank of St. Louis
Part of Series: Page One Economics Newsletter
Publication Date: 2022-05
Pages: 8 pages