Final answer:
The option that is NOT an intermediate target of the Federal Reserve is core inflation. Monetary aggregates and short-term interest rates, such as the federal funds rate, are used as intermediate targets through open market operations.
Step-by-step explanation:
Which of the following is NOT an example of an intermediate target of the Federal Reserve (Fed)? The option that is NOT considered an intermediate target by the Fed is C. core inflation.
Intermediate targets are variables that central banks, such as the Fed, use to achieve their ultimate goals of controlling inflation, managing employment levels, and stabilizing the economy. Monetary aggregates and short-term interest rates, specifically the federal funds rate, have been used as intermediate targets. The Fed adjusts these through open market operations to influence financial conditions and thus the broader economy.
Inflation targeting is more of a final policy target, not an intermediate one. Although the Fed is certainly concerned with inflation, it typically sets policy goals that focus on expected inflation and uses intermediate targets like the federal funds rate to influence economic activity to keep actual and expected inflation within their desired range.