The secretary of the Treasury is Henry Paulsen Any president that doesn’t follow the employment act of 1946 can be impeached. It stated that their priorities must be full employment, price stability, and economic growth. Monetary and fiscal policy. Monetary policy is how the fed controls the money creation and interest. Fiscal policy is government spending and budget to support the employment act of 1946. When the fed buys and sells government securities is the most important part of the federal open market committee to reach their financial goals it sets monetary policy. The overall policy of the fed is set by the open market committee. When the fed sells them take loquity from the system, when they buy it puts money into the system and the interest rates go down. Economic growth should be stronger when the fed buys, money is going into the system. When they take money from the system economic growth should slow and interest rates should go higher. Money supplies should go lower. Federal funds are the excessive funds traded by the banks. The Federal Reserve sets the
This is the end of the preview.
access the rest of the document.