In the summer of 2015, many economists and policymakers expected that the Federal Reserve would increase its

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In the summer of 2015, many economists and policymakers expected that the Federal Reserve would increase its target for the federal funds rate by the end of the year. Some economists argued, though, that it would be better for the Fed to leave its target unchanged. At the time, the unemployment rate was 5.3 percent, close to full employment, but the inflation rate was below the Fed's target of 2 percent. What policy goal would the Fed promote if it did not increase its target for the federal funds rate? Briefly explain.
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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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