Money and Banking
To: Professor: James Garvin
In the last five years, the Federal Reserve has adopted a huge monetary system of decreasing and minimizing the pressure of the interest rate to assist and unsure the hesitant economy and the financial market. The Federal Reserve has by all means put in every strategy to eliminate the impending or disaster that will maintain the cause of recession at the very lowest point of happening. The Federal Reserve has control this situation successfully. As we all know the United State economy which was at one point at its peak has been sloping downward due to the fact that the financial market and it’s over consumption as a whole has slow down for the last five years. In supporting this action the Federal Reserve has customarily or frequently lower interest rates, creating new capital in the system that is necessary, for this reason recession has been primarily minimize from the economy. The primary objective for this strategy is to enforce liquidity in the system and at the same time increase consumer spending and support the faltering economy. In this light, the United State Dollar will have strength against the global market and currency. Taking a look at the previous five years, the United States Dollar has grown stronger by at least 7% -8% on an average against or across all global currencies.
www.federalreserve.gov the Federal Reserve, the central bank of the United States provides the nation with a safe flexible and stable monetary and financial system. The federal open market committee is the monetary policy making body of the Federal Reserve System. www.wsj.com , the journal primarily covers American economist and international business topic, financial and issue. www.aeaweb.org , the purpose of the association is to encourage economic research especially in the historical and statistical study of the actual condition of industrial life, the issue of publication on economic subject. www.monetary.org this is an American institution that is publicly supported charity founded in 1996. It explains what need to be fix, how we can trust the government with the power to create money, how the financial crisis came about and the explanation of monetary reform. www.treasury.gov treasury promote economic growth through policies to support job creation, investing and economic stability. Treasury also over sees the production of coins and currency, the disbursement of payment to the public, revenue, collection and the funds to run the government.