The type of monetary policy regime that the Federal Reserve has been following in recent years can best be described as
A) monetary targeting.
B) inflation targeting.
C) policy with an implicit nominal anchor.
D) exchange-rate targeting.

Question

Quizplus · Accepted Answer

The Federal Reserve has been following a policy with an implicit nominal anchor, which means that it is not targeting a specific monetary aggregate or inflation target, but rather using a variety of economic indicators to inform their decisions and ensure a stable level of inflation and employment. This approach allows for more flexibility in responding to changing economic conditions.

The Type of Monetary Policy Regime That the Federal Reserve