Question

We have been discussing the structure of and tools used by the Federal Reserve Bank (Fed). If it were up to you, what directions would you give to the Fed regarding policy goals and targets. Would you change the current Fed?; Leave it alone?; Close it?...

Answer 1

The description is summarized in the clarification portion below, and according to the particular context.

Step-by-step explanation:

• Throughout the banking as well as the financial system of the United States of America, the Fed would be a leading organization. The Fed has dual inflation stabilization goals and maximum jobs. For some of these two Federal Reserve goals, there seems to be a clear compromise. The equilibrium between any of these two must be created. The US economy is running well above potential output, but in such a situation, the Fed should keep a watchful eye on a future current price increase, or market stabilization would have to be a goal.
• Therefore, because the Fed would be a monetary policymaker, it would rely more on inflation stabilization. Jobs factors may also be tackled by monetary policies. In other words, the Fed should give great importance to market stability instead of full jobs.
• The Fed becomes currently operating independently and therefore its activity is free of political intervention, so it must function like this. This wouldn't be the best measure to shut the Fed. Since the Fed figured prominently in mitigating the detrimental consequences of the 2008-2009 crisis. With the aid of the Fed, long term financial crises or inevitable crises will be stopped comfortably.