FED INTEREST RATE HIKE
Monetary Policy
Monetary policy is a set of tools that a nation's central bank has available to promote sustainable economic growth by controlling the overall supply of money that is available to banks, businesses, and consumers.
The U.S. Treasury Department has the ability to create money, but the Federal Reserve influences the supply of money in the economy, largely through open market operations (OMO). Essentially, this means buying financial securities when easing monetary policy and selling financial securities when tightening monetary policy. The Fed's preferred securities for open market operations are U.S. Treasuries and agency mortgage-backed securities.
The goal is to keep the economy operating at a rate that is neither too hot nor too cold. The central bank may force up interest rates on borrowing in order to discourage spending or force down interest rates in order to inspire more borrowing and spending
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