Basic Economics: The Federal Reserve Board; Monetary and Open Market Policies

What lies beneath the society we created? What binds all that we hold dear, if not economics? The first in control of the U.S federal system is The Federal Reserve Board. The chairman of the Federal Reserve Board is considered the second most powerful person in the world; second only the President of the United States. Though, so power the Fed (Federal Reserve Board) only has two functions: Monetary and Open Market policies. With …

…all the things the Federal Reserve Board will do to contract and expand the money supply but we can always keep asking the question why. The US needs to maintain a certain level of everything to keep stable. The United States need 3%-4% inflation and 3% growth in GDP (Gross Domestic Product), also needed is 3% unemployment rate (yes we need jobless people around!). All these things must be kept in check to keep everything going well.