The Fed has a single tool—open market operations injecting or withdrawing reserves—with which it can hit only one intermediate target, either an interest rate or the quantity of money; choosing an interest rate as the intermediate target is precisely how the Fed gets into trouble.

causalpending

Speaker

Michael Belongia

Evidence Quote

the Fed has a single tool open market operations

Source

Michael Belongia on the Fed 01/11/2010EconTalk
Created: 6/15/2026, 9:37:51 AM

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