Throughout the pandemic until current times the Federal Reserve has been extremely active in trying to stimulate growth and then to control inflation. Specifically, the Fed followed one policy in 2020, and a different one now. You are to compare and contrast Fed activities during 2020 and the recent and current periods in 2022/2023. Here are the elements:

*Please use sources that everyone can access!! PLEASE DO NOT USE SOURCES THAT REQUIRE SUBSCRIPTIONS!!!!! 

1. What were/are the Fed’s goals in the two periods?

You will use research to back up these Goals below for the two periods:

2020- Fight recession 

2022/2023- Fight Inflation

2. What tools did the Fed employ in both periods in an attempt to achieve the goals described in (1).

Research/ backup is required for the following tools mentioned:

You don’t have to use all tools, some tools from each period that work together but make sure they are backed up with research!

2020- lowered reserve requirements, lowered discount rate, massive purchase of bonds (quantitative easing).

2022/2023- feds increased reserve requirements, raised discount rate, engaged in quantitative tightening (stopped buying bonds or even selling them)

3. Using the concepts developed in class, analyze Fed activities in the two periods. Examples are the bond market, loanable funds market, money markets, aggregated supply and aggregated demand, and quantity theory of the money market. Graphs are helpful of these markets.  Make it analytical. These examples are for illustrative purposes only. Use the concepts that you deem relevant and explain the functioning of the markets and how that affected the economy.

This paper is a major research one so outside sources are required with proper citation. Please use subheadings.