Monetary policy is the action taken by the Federal Reserve to expand or contract the money supply and influence interest rates.
What are the current unemployment and inflation rates? How has the Fed redefined its targets for inflation and unemployment, and how do current conditions compare to those targets?
As the top advisor to the chair of the Federal Reserve, define contractionary and expansionary monetary policies and explain which you advise the Fed to pursue todaygiven the inflation and unemployment targets versus the current rates.