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The Federal Reserve doesn't control fiscal policy - only monetary policy. They don't set tax rates. They only control the money supply. They are able to reduce
by arcticbull 4y ago
The Federal Reserve doesn't control fiscal policy - only monetary policy. They don't set tax rates. They only control the money supply. They are able to reduce wages by increasing interest rates. Businesses have to spend more money servicing debt - and can't obtain more debt as inexpensively - so they can't afford to pay workers the same rates.
- landemva 4y ago>> They don't set tax rates. Federal Reserve's FOMC claims to set short term interest rates. https://www.federalreserve.gov/monetarypolicy/openmarket.htm https://www.federalreserve.gov/monetarypolicy/openmarket.htm
- deleted 4y ago[deleted]