Can a foreign exchange intervention by the Fed change the exchange rate if the Fed does not
Question:
Can a foreign exchange intervention by the Fed change the exchange rate if the Fed does not change its target for the federal funds rate? If the Fed wanted to carry out a foreign exchange intervention while leaving the target for the federal funds rate unchanged, what would the Federal Reserve System’s account manager need to do to maintain the target federal funds rate?
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Yes a foreign exchange intervention by the Fed can potentially change the exchange rate even if the Fed does not change its target for the federal fun...View the full answer
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Related Book For 
Money Banking And The Financial System International Edition
ISBN: 978-1292000183
2nd Edition
Authors: R. Glenn Hubbard ,Anthony P Obrien
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