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In early 2020 during the Covid-19 (coronavirus) outbreak around the world, the US Federal Reserve lowered short-term interest rates to zero and announced that they

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In early 2020 during the Covid-19 (coronavirus) outbreak around the world, the US Federal Reserve lowered short-term interest rates to zero and announced that they would maintain short- term rates at this level for at least 2 years or until the economy recovered. This type of announcement is known as forward guidance and it is a nonconventional tool of monetary policy. What did the Federal Reserve hope to achieve with this guidance

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