O Write a one-page letter that answers the questions below. Cite at least 3 reputable sources. What is the purpose of the U.S. Federal Reserve System? (10%) What are the advantages or disadvantages of having an independent Fed, one which doesn't take direct orders from the legislative or executive branch? (10%) How does the Fed "cut" or "raise" rates? (20%) When is it appropriate to "cut" or "raise" rates? (20%) . What is the advantage or disadvantage of the Fed changing interest rates too much in one direction? (20%) Given the general direction of the current economy, what do you think the appropriate Fed policy should be in the next 6 months? Defend your answer with statistics and good economic reasoning. (20%)