3 ms·
The Fed logically cannot target both monetary aggregates and interest rate levels at the same time. Its impossible by definition. They operate interest rate pol
by bubbleRefuge 4y ago
The Fed logically cannot target both monetary aggregates and interest rate levels at the same time. Its impossible by definition. They operate interest rate policy by buying and selling assets (treasuries and Interest on reserve accounts) in order to hit a target. These operations affect monetary aggregates.