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One of the ways the Federal Reserve carries out its responsibilities for conducting monetary policy is by trying to affect the level of key
One of the ways the Federal Reserve carries out its responsibilities for conducting monetary policy is by trying to affect the level of key interest rates. In early 2016, Federal Reserve Chair Janet Yellen met with President Barack Obama in the White House. According to an article in the Wall Street Joumal, a spokesman for the president stated that "he would not anticipate that Ms. Yellen would go into detail on the path of interest rates at the meeting Source: David Hamrison, "Barack Obama, Janet Vallen Discuss Economy, Regulation at White House." Wall Street Journal, April 11, 2016 Which best describes why the president and Ms. Yellen did not discuss interest rates? OA. They did not have enough time. OB. It is important for the Fed to maintain its independence OC. The Federal Reserve is not a government organization OD. The president does not set interest rates Why would the president worry about the possibility that the appearance of Fed independence might be undermined? A. It could undermine confidence in the Fed but would not have an impact on the markets B. It could instill confidence in the Fed and improve market conditions OC. It could instill confidence in the Fed and worsen market conditions. D. It could undermine confidence in the Fed and impact market conditions.
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