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The Feds Long Term Goal Is to Provide Liquidity to the Capital Markets
The federal reserve's job is to maintain liquidity in the capital markets so that businesses can invest in growing their products. The long term target of the Fed is two % inflation, and it's crecmetaan a ain't sure there's enough cash to support economic growth. If you keep too much liquidity in the system for too long, you have inflation, even if you have economic growth. And now, by pulling the money out of the system super, super fast, we reduce the inflationary effects, potentially, but we tank the economy.