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I am afraid that this will not go too well for the federal reserve.
My mom works at the federal reserve and she says they are having a hard time making such big decisions.
Prices are back to the normal level my new ballet shoes cost more than my last ones.
The economy is in a state of recession and prices are low. DEFLATION IS HEAR, SURPLUS IS NEAR!!! The federal reserve has to implement a easy monetary policy.
The goal is to get money into circulation by lowering the discount rate. Also they can buy government bonds from the government. They will also reduce the reserve requirement by letting people take more money out of the bank.
Now that the government has implemented the policy the economy has improved. The economy has grown. We hope to be in the expansion on the business cycle.
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