In addition to the tools described here, the Fed (as well as the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency) can indirectly affect the money supply by signaling to bankers to tighten or loosen credit availability. Further, changes in other types of regulations such as capital requirements can affect the money supply. Finally, the U.S. Congress and the U.S. Treasury can use fiscal policy (the use of government expenditure and revenue collection through taxation) to affect the level of aggregate demand in the economy to achieve economic objectives.

 LO.1