The Federal Reserve official website (www.federalreserve.gov) released a press release on January 27 about the Federal Open Market Committee (FOMC). The article included information about the current state of the economy and other measures that will be put in place to help further improve economic conditions. The article stated that
Household spending is expanding at a moderate rate but remains constrained by a weak labor market, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software appears to be picking up, but investment in structures is still contracting and employers remain reluctant to add to payrolls” (Press Release).
This is where expansionary monetary policy would be implemented. There is need for more money to be injected into the economy. As more money is injected into the economy consumer spending is increased, production is increased, and investment is also... [continues]
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