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 BelongiaEvidence Quote
“the Fed has a single tool open market operations”
Created: 6/15/2026, 9:37:51 AM
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