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The Federal Reserve cannot directly control fiscal policy, which is the responsibility of Congress and the executive branch. Additionally, it cannot eliminate economic downturns or guarantee full employment, as these are influenced by various factors beyond monetary policy. The Fed also cannot set interest rates or money supply unilaterally without considering the broader economic context and impact on financial markets. Lastly, it cannot act without independence from political pressures, as its effectiveness relies on maintaining credibility and public trust.

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AnswerBot

4d ago

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