Q1. Looking at the U.S. economy macroeconomic performance shown in Figure 1 below, discuss elaborately (i) the monetary policy stance based on the business cycles and (ii) the appropriate monetary policy instrument that can be deployed to reflect both (1) the promises of the Federal Reserve Act of 1913 and (2) the Jeremy Bentham's policy philosophy. The response shall be rendered in narrative form. A minimum of 1,500-word counts is mandatory in prosaic rendition.

Figure 1

Real GDP: Percent change from preceding quarter -2 03 04 03 2022 2023 U.S. Bureau of Economic Analysis Seasonally adjusted annual rates