
Why do we need an independent Fed?
The New Liberal Podcast
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Understanding Inflation and the Fed's Role
This chapter explores the rationale behind the Federal Reserve's target inflation rate of 2% and its importance for economic stability. It discusses the relationship between inflation and interest rates, highlighting the Fed's strategies for managing the economy through varying monetary policies over time. Additionally, the chapter contrasts historical economic crises with the modern economic landscape, emphasizing the evolution and effectiveness of the Federal Reserve in promoting growth and reducing recession severity.
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