Last week we discussed the Fed's Quantitative Easing policy, utilized to combat the Great Financial Crisis. The Fed also sets the Fed Funds rate as a means of influencing market interest rates. During the Covid-19 pandemic and its aftermath, monetary policy kept interest rates near all-time lows and fiscal policy authorized trillions of dollars of economic stimulus in order to promote economic stability and low unemployment.

In 2022, we faced inflation levels not seen since the 1980s.

Research and discuss the impact of the Fed's low interest rate policy on inflation. What policy approach is the Fed using to address the high inflation rate. Are they having success?

Use evidence to support your response and incorporate formatted in-text citations and references to credit your sources