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Monetary Policy and the Federal Reserve: Current Policy and Conditions
04-03-2020, 11:39 AM.
Post: #1
Monetary Policy and the Federal Reserve: Current Policy and Conditions
The decision to cut rates in 2019 was controversial. The Fed justified the cut on the grounds that risks of a growth slowdown had intensified and inflation was still below 2%. But it also argued that the economy was still strong, and some of the risks to the economy, such as higher tariffs, had not yet materialized at the time of the decision. Overly stimulative monetary policy in a strong expansion risks economic overheating, high inflation, or asset bubbles.

https://fas.org/sgp/crs/misc/RL30354.pdf
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