Assignment:
With the unemployment rate at 3.5%, most economists believe that the U.S. economy is at or very near full employment. But there is a dispute over monetary policy. According to a recent news report, "President Trump again blamed the Federal Reserve for holding back the economy, saying the U.S. has "unlimited potential." "The Fed doesn't have a clue," Trump tweeted Tuesday as U.S. policymakers began the first of a two day meeting." What is the dispute between the President and the Federal Reserve Bank? Use economic concepts from monetary policy and graphs to illustrate the dispute between the President and the Federal Reserve Bank. In other words, according to economic theory presented in class, what monetary policy should the Federal Reserve Bank be using? The President wants the opposite monetary policy. Use a graph to illustrate the differences and explain the effect of each on the macroeconomy.