To attain its monetary policy goals, the Federal Reserve uses the following tools:
The Federal Reserve is the central bank of the United States.
The Federal Reserve (Fed) has the responsibility of managing the monetary policy of the government by ensuring a monetary supply that meets the government's targets.
Through the open market operation, the Fed buys and sells bonds and regulates the money supply.
Thus, to attain its goals of low unemployment, price stability, and sustainable economic growth, the Federal Reserve uses the following tools:
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