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To control short term interest rates, the Federal Reserve Bank of New York should establish a floor on money market rates while improving monetary policy.

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11y ago

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Related Questions

Why did the Federal Reserve increase interest rates?

The Federal Reserve increased interest rates to control inflation and encourage saving and investment.


Why did the Federal Reserve raise interest rates?

The Federal Reserve raised interest rates to control inflation and encourage saving and investment.


Efforts by the federal reserve system to control the money supply and interest rates are known as what?

Monetary Policy


Why would the Federal Reserve Bank of New York want to control short term interest rates?

The Federal Reserve Bank of New York would want to control short term interest rates to prevent them from falling below the target amount and creating an economic decline.


When the federal reserve board lowers interest rates it most likely attempting to?

lower interest rates.


Who sets the interest rates in the US.?

The Federal Reserve (The Fed)


Why might the Federal Reserve influence the money supply and interest rates in the economy?

The Federal Reserve influences the money supply and interest rates in the economy to help regulate economic growth, control inflation, and stabilize the financial system. By adjusting these factors, the Federal Reserve can encourage borrowing and spending, or saving and investing, to achieve its economic goals.


Who sets the bank mortgage interest rate?

Contrary to popular belief, banks do not fully control the interest rates for mortgages. It is in fact the Federal Reserve that is responsible for setting and changing the interest rates that you pay.


Who sets national interest rates in the US?

The Federal Reserve (The Fed)


Why does the Federal Reserve cut interest rates?

banking economics us government


Did the federal reserve keep its interest rates low or high through out the 1920s?

low


How did the Federal Reserve's higher interest rates in the 1930s complicate the great depression?

;lsh