Assignment Problem: Review the following.
The Fed Is Set to Pull Back Economic Help Rapidly. Is It Too Late? By Jeanna Smialek posted at The New York Times
Questions to answer.
Q1. Why is the Fed moving to raise interest rates more rapidly and shrink the money and credit supply by selling securities (reducing the size of its balance sheet)?
Q2. What are the signs that the economy is already slowing down?
Q3. What are the optimists saying?
Q4. What are the pessimists saying?
Q5. What was the Fed's interest rate policy in 2020?
Q6. What did the Fed do with its balance sheet during the pandemic?
Q7. What made the Fed rethink its policies aimed at stimulating the US economy during the pandemic?
Q8. What mistake might the Fed have made during the pandemic?
Q9. Do you believe the Fed is acting too late to avoid causing a recession? Defend your answer.