Question

Visit the Fed's Summary of Commentary on Current Economic Conditions, also known as the Beige Book. Prepare a proposal recommending monetary policy actions designed to correct problems with spending, employment, and prices. Defend your choices.

Please write at least 10 or more crntences.

Answer 1

Answer:

This book suddenly began to say that strong economic growth recovery exist and there is wage growth in United States.
The reality is that labor participation rate today is just 63%, which clearly states that over 37% people are not working.

Spending:

Government's action after the banking crisis was to rescue the banks, This was the option that government has chosen, but later down the line now it is time to rescue the country from over reaching expansionary monetary policy which has already done lot of damage

Employment:

Labor participation rate of 63% is the real example of joblessness in the country, Solid economic recovery based on fundamentals only can guarantee jobs to millions.

Price:

Inflation is around the corner, but still we do not have any inflation concerns, Negative interest rates or almost zero interest rates for years must have kicked in inflation but thanks to cheap goods and services that flood america every single day inflation is nowhere seen.