Federal Reserve monetary policy during 2004 showed that:

Question

Quizplus · Accepted Answer

The Federal Reserve's monetary policy during 2004 showed that sometimes monetary policy goals can conflict. This is because the Federal Reserve had to balance the objective of achieving price stability with the objective of promoting economic growth and low unemployment. In 2004, economic growth was strong, but there were also concerns about inflationary pressures. As a result, the Federal Reserve gradually raised interest rates throughout the year to combat inflation. However, this also had the effect of slowing down economic growth. Therefore, the Federal Reserve had to make trade-offs between its conflicting goals.

Federal Reserve Monetary Policy During 2004 Showed That