1. A $1 trillion U.S. budget deficit is one big reason the Fed may have to cut rates The recent debt deal between the White House and Congress virtually guarantees trillion-dollar deficits well into the future and the rising debt calls for the Federal Reserve to lower interest rates.92 Explain why a large government budget deficit might call for lower interest rates and why the news clip might be wrong and higher rates needed?4. Explain whether the Fed faces a tradeoff in the short run. 5. What is the Fed's "dual mandate" for the conduct of monetary policy What are the means to achieving the goals of the dual mandate