Date: To: From: Subject: THE FED AND INTEREST RATES Introduction Changing the interest rates is definitely a good monetary policy for the Fed to use when slowing down or speeding up the economy. The government would want to speed up the economy when the economy is in a recession because the goal of the Fed is to promote economic growth. On the other hand, the economy will want to slow down the economy when the …showed first 75 words of 1041 total…

…showed last 75 words of 1041 total…Given the prior information, it can be seen that when the supply of money increases the economy’s growth increases, and that is why lowering the interest rate is a good monetary policy. Sources Cited “Rate Cut Will Reveal Extent of Fed Worries: Economy: Forecasters expect at least a quarter-point decrease, mainly because of continued woes in the corporate sector.” The Los Angeles Times. 25 June 2001. Retrieved 26 June 2001 from .