What do economists mean by the risk of the fed overshooting


Question 1: What is the role of the Federal Reserve System and what are the key instruments of monetary policy it uses? Describe briefly how each of them works.

Question 2: Discuss the key factors that the Fed must take into account when deciding whether or not to change the benchmark interest rates. In the current policy discussions on monetary policy, what do economists mean by the risk of the Fed overshooting?

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Microeconomics: What do economists mean by the risk of the fed overshooting
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