In 2001, the FOMC Lowered the Target Federal Funds Rate

question 33

Essay

 In 2001, the FOMC lowered the target federal funds rate eleven times, cutting the rate from 6½ percent to 1¾ percent. Why didn't the Fed just cut the rate by larger amounts early on? 

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Definitions:

DNA

Deoxyribonucleic acid, a molecule that contains the instructions an organism needs to develop, live, and reproduce, made up of two long strands forming a double helix.

Replication

In the context of molecular biology, replication refers to the process by which a cell duplicates its DNA, allowing genetic information to be passed on to the next generation of cells.

Transcription

The method through which the data encoded in a DNA strand is replicated into a new messenger RNA (mRNA) molecule.

RNA Polymerase

Enzyme that carries out transcription.