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The Federal Reserve cannot control inflation or influence output and employment directly; instead it affects them indirectly, mainly by raising or lowering a short-term interest rate called the "federal funds" rate. Most often, it does this through open market operations in the market for bank reserves, known as the federal funds market. Banks and other depository institutions keep a certain amount of funds in reserve to meet unexpected outflows. Banks can keep these reserves as cash in their vaults or as deposits with the Federal Reserve. In fact, banks are required to hold a certain amount in reserves...
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Common topics in this essay:
- “Monetary Policy And Inflation Dynamics”
- Economical Effects Of Inflation
- Effects Of Inflation On Consumers
- Federal Reserve and Monetary Policy
- Inflation Targeting As A Strategy Of The Conduct Of Monetary Policy
- Monetary Policy and the Federal Reserve
- monetary policy and inflation
- U.S. Monetary Policy and What the Federal Reserve
- US Federal Reserve Monetary Policy
- Reserve Bank Of India-Monetary Policy
- effects of inflation
- federal reserve and inflation
- Monetary policy, inflation and growth
- The Federal Reserve Policy from 1999 to the Present:
- The Federal and State Minimum Wage Growth, and Inflation
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