What's the Big Idea? One of the Fed’s Biggest Policy Tools Is Busted

What's the Big Idea? One of the Fed’s Biggest Policy Tools Is Busted

Assessment

Interactive Video

Business, Social Studies

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the Federal Reserve's role in implementing monetary policy, focusing on the effective Fed funds rate and recent trends. It highlights the Fed's actions to manage this rate by adjusting the interest on excess reserves (IOER) and the challenges faced in ensuring policy efficacy. Analysts suggest that external pressures, such as quarter-end funding and potential debt ceiling issues, may require the Fed to adjust its tools or develop new strategies to maintain control over interest rates.

Read more

2 questions

Show all answers

1.

OPEN ENDED QUESTION

3 mins • 1 pt

What does the term IOER stand for, and why is it significant?

Evaluate responses using AI:

OFF

2.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the potential implications if the debt ceiling issue arises again?

Evaluate responses using AI:

OFF