Read the following report, and answer the quesiton.

The Federal Reserve Open Markets Committee (FOMC), in a surprise to no one, decided to leave monetary policy unchanged after its two-day meeting ended on April 28. That means near-zero interest rates and $120 billion in monthly bond purchases are here to stay a while longer as the economy convalesces from the Covid-19-induced recession.

Despite inflation concerns amid rapid improvement in employmentemployers added more than 915,000 jobs in March as the unemployment rate dropped to 6.0%and trillions in stimulus spending, Chairman Jerome Powell reiterated that more healing is needed before the Fed does anything that might dampen economic activity. "Its not yet time to have a conversation about tapering," Powell said in a press conference following the Feds announcement. We're 8.5 million jobs below where we were in February of 2020.

Questions:

1. What the mandate for the monetary policy goals is adopted by the Fed? Explain your reasons.(6%)

2. According to the report, what monetary strategy is adopted by the Fed? Explain its advantages. (12%)

3. Can you explain what tools of monetary policy the Fed may use in the future? (12%)