Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. Monetary policy consists of the process of drafting, announcing and implementing the plan of actions taken by the central bank.
Healthy growth continued in retail and nonfinancial services. Loan demand and volumes increased further, as did loan pricing. Home sales were flat to up over the past six weeks. Drilling activity was flat as limited pipeline and transportation capacity inhibited growth. Employment increased, and widespread labor shortages continued to pressure wages and even restrain business growth in some sectors of Texas
Measured on a 12-month basis, inflation has remained below the Federal Open Market Committee's (FOMC) longer-run objective of 2 percent. Eventually increasing the federal fund rate to 1 1/2 instead of 1 1/4
Higher federal fund rate means higher reserve requirment