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Article Summary In a July 2015 Interview on CNBC,Republican Senator Pat Toomey

question 42

Multiple Choice

Article Summary
In a July 2015 interview on CNBC,Republican Senator Pat Toomey expressed concern that interest rates remained low and that it was time for the Fed to announce a date for interest rates to rise and to stick with that date.In the interview,Toomey stated "The Fed no longer has credibility,and you can see that.The divergence between the futures markets and the Fed's own projections about what they're going to do about interest rates-this is a huge problem." A member of the Senate banking committee,Toomey has called on the Fed to adopt a rule which would require it to explain how monetary policy would be set,as well as explain to Congress any reasons for deviations from the rule.In a 1977 amendment to the Federal Reserve Act,Congress has mandated that the Fed act to maintain stable prices,maximize employment,and stabilize long-term interest rates.
-Refer to the Article Summary.Senator Pat Toomey brought the Fed's credibility into question when it once again delayed raising interest rates despite several prior announcements alluding to timing for a potential interest rate hike.Prior to this,over the past two decades whenever a change in Fed policy had been announced,the change has ________ taken place,leading to ________ credibility.

Definitions:

Majority Vote

A decision-making process where more than half of the votes cast by members eligible to vote are needed to pass a resolution or make a decision.

Unanimous Vote

A voting result in which all participants agree and vote the same way on a particular issue or election, showing total agreement.

Proceeds

Whatever is received on the sale, exchange, collection, or other disposition of collateral.

Distributing

The process of allocating or dispersing items, assets, or resources from a central point to multiple recipients.