current economy.
The role and the effectiveness of the Federal Reserve to stabilize the current economy. The Federal Reserve was called in to gather policies to maintain the fragile economic to recovery. The Fed promoted change to make a better economy by 2010 Dodd-Frank wall street reform and consumer involve a systemic risk and to maintain a financial stability. This act allowed the Federal Reserve to have a stricter Standards.
The act increases the quantity and improve the regulatory, capital of the US banking system. They increased the minimum tier from a one capital ratio to a six percent of risk weighed asset. The changes are meant to reduce to burned and complexity of the rules.
The federal reserve system is also called the central bank. It was created by congress to offer the nation a safe, flexible and stable monetary financial system. The fed needed congress to control the financial state chartered banks in the United States. The Fed primary responsible to the nations is to have an effectiveness role to the current economy to help stabilize, provide employment and control interest rates for banks.
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The economic Indicator shows the Feds change in the employment, spending and unemployment. The most important indicator for the economic would be the GDP report. The GDP is the largest data of the state economy. The GDP has a percentage that shows if the economy has growth or has an inflation impact. If the economy grows at a 2.5% increase per year that range shows significant growth.
If the growth is above the economy growth that’s unsustainable and a precursor to high inflation and then the Feds would try and slow down the economy. Growth below the 2.5 percent means the economy is running slowly. Showing a increase in the unemployment and lower spending. The GDP shows goods and service and the CPI measure the