Question

Do you agree with the Federal Reserve’s monetary policy? Why or why not?

Answer 1

Yes, I do agree with the Federal Reserve monetary policy because Federal Reserve monetary policy is majorly focused at maintaining an appropriate monetary flow into the economy which will be helpful in order to maintain the economic stability and these monetary policy are in synchronisation with the best interest of peoples of the economy

In the current scenario, Federal Reserve has adopted quantitative easing to fight risk of an impending recession as due to the coronavirus concern in entire world there was a risk related to financial failure and Federal Reserve slashed the interest rate and it also decrease the monetary requirement for various banks so the Reserve requirement has also been lower and Federal Reserve that also engaged itself in open market operations in order to increase the Liquidity into the economy so it had led to stimulation of the demand and increase in the money supply in the economy so these counter measures to fight recession has been proactively done by the religious and they are highly influential.

Hence, I am completely agree with the approach which has been adopted by the Federal Reserve in order to management economic situations and it has proactively managed through aggressive rate cutting and provided support to the economy and it can be seen that stock market has also recovered and made new highs as Federal Reserve has provided them with adequate stimulus.