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How Does the Fed Use Its Monetary Policy Tools to Influence the Economy? - Page One Economics®

The Federal Reserve has a congressional mandate to promote maximum employment and price stability. This issue of Page One Economics® explains how the FOMC conducts monetary policy by setting the target range for the federal funds rate and how the Fed uses its policy tools to steer the federal funds rate into the FOMC’s target range. 

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Making Technical Adjustments: The Difference Between “Conducting” and “Implementing” Monetary Policy - Economic Synopses

Technical adjustments to the Fed’s administered rates help to implement existing monetary policy in changing market conditions.

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COVID-19’s Effects on the Economy and the Fed’s Response - Page One Economics®

The U.S. economy started strong in 2020, but then the COVID-19 pandemic brought about the most abrupt economic slowdown in U.S. history. This Page One Economics® describes Federal Reserve actions that stabilized financial markets and bolstered the economy.

research.stlouisfed.org/.../2020/08/10/covid-19s-effects-on-the-economy-and-the-feds-response

The Fed’s New Monetary Policy Tools - Page One Economics®

The Federal Reserve (the Fed) and its monetary policy tools have a significant presence in economics standards, textbooks, and curricula. The Fed has changed the way it implements monetary policy, but many of the recent changes are not reflected in teaching resources. This special issue of Page One Economics® is intended to provide information and teaching guidance for educators as they transition to teaching about the new tools of monetary policy.

research.stlouisfed.org/.../publications/page1-econ/2020/08/03/the-feds-new-monetary-policy-tools

The Rise (and Fall) of Inflation During the Early 2020s - Page One Economics®

Inflation has been on many people’s minds. There are several measures of inflation available, and each one plays a role in providing a more complete understanding of inflation’s causes and effects. This Page One Economics® Econ Primer describes key measures of inflation, including the consumer price index, and how the Federal Open Market Committee pays particular attention to these measures as it makes policy decisions—adjusting its policy stance when necessary to move the economy toward maximum employment and price stability.

research.stlouisfed.org/.../2023/08/25/the-rise-and-fall-of-inflation-during-the-early-2020s

Teaching the Linkage Between Banks and the Fed: R.I.P. Money Multiplier - Page One Economics®

The money multiplier has been a standard concept in introductory economics classes for decades, but changes in the way the Fed implements monetary policy has made the model obsolete. This article provides information about the linkages between the Fed and the banking system and provides teaching suggestions. 

research.stlouisfed.org/.../teaching-the-linkage-between-banks-and-the-fed-r-i-p-money-multiplier

How Have Banks Been Managing the Composition of High-Quality Liquid Assets? - Review

Banks’ liquidity management practices are fundamental to understanding the implementation and transmission of monetary policy. Since the Global Financial Crisis of 2007-09, these practices have been shaped importantly by the liquidity coverage ratio requirement. 

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