In March 2022, officials at the Fed disagreed about what the right target for the federal funds rate was. Jerome H. Powe

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In March 2022 Officials At The Fed Disagreed About What The Right Target For The Federal Funds Rate Was Jerome H Powe 1 (43.06 KiB) Viewed 14 times

In March 2022, officials at the Fed disagreed about what the right target for the federal funds rate was. Jerome H. Powell, Chair, John C. Williams, Vice Chair, Michelle W. Bowman; Lael Brainard; Esther L. George, Patrick Harker; Loretta J. Mester; and Christopher J. Waller favored a federal funds rate target range of 0.25% to 0.5%. James Bullard wanted a federal funds rate target range of 0.5% to 0.75%. Russia had recently invaded Ukraine, and the Federal Reserve was concerned that the invasion may weigh on the economy of the United States and cause additional inflation. The core PCE inflation rate at the time was 5.4%, which was higher than the Fed's target of 2%. The Federal Reserve decided to implement a federal funds rate target range of 0.25% to 0.5%. Relative to the higher federal funds rate target rate that Bullard wanted, how would the lower federal funds rate target range that was implemented help the Federal Reserve achieve its policy goals? O Lower federal funds rate target ranges are better for promoting maximum employment since lower interest rates stimulate the economy. O Lower federal funds rate target ranges will allow the Federal Reserve to accomplish its goal of eliminating unemployment since lower interest rates stimulate the economy. O Lower federal funds rate target ranges are better for ensuring price stability because they reduce inflation. O Lower federal funds rate target ranges are better for promoting financial stability.