Fed

Short Answer: Not really. The true role of the Fed is to orchestrate and backstop the banking system. By encouraging lending, money supply rises, and economic activity follows. Unfortunately, so does inflation. Therefore, inflation – or as the Fed calls it, stable prices – is part of the deal. Control over short-term interest rates is more of a side show and arguably does more harm than good. Full Answer: The question of whether or not the Federal Reserve actually has the ability to steer the economy and influence the wellbeing of the average American has been a debate ever since…