An examination of the monetary policy in the United States and how this is determined by the Federal Reserve bank.
This paper explains the role and purpose of the Federal Reserve bank in setting the monetary policy in the United States. It discusses how every economic activity in the United States is related to the policies that are decided by the monetary policies of the nation that are formulated. It reviews the different aspects of a fiscal policy and looks at the different ways this affects the country.
“Monetary policy is the segment of the Federal Reserve System, a unique U.S. agency. They are the central bankers for the country and supplies the presently “gold less” money that is supplied by the government printing presses. The methods used for increasing and decreasing the demand for money is through the increase and decrease of short term interest rates, in reverse order. 2 “The Fed”, as it is usually called, is comprehensive of 12 regional Federal Reserve Banks and 25 Federal Reserve Bank branches. All nationally recognized commercial bank are in demand by the law to be members of the Federal Reserve System, membership is of choice for state recognized banks.”