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Federal Reserve Policy






The Fed is mainly concerned with inflation and factors that portend inflationary pressures. The Fed determines whether to ease or tighten credit conditions based on economic and inflationary conditions.

Fed policymaking is complicated, much more so than indicated by the three charts in this section. However, these three charts do depict the current focus of attention by Fed officials.
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Federal Reserve Policy   •   Capacity Constraints   •   Unemployment Rate vs. Hourly Earnings

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