If you assume that the equation of exchange is a dependable economic model, then the Fed can control

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The equation of exchange, which states that MV = PQ (where M is the money supply, V is the velocity of money, P is the price level, and Q is real GDP), is a commonly used model in macroeconomics. It suggests that nominal GDP (PQ) is determined by the money supply (M) and the velocity of money (V), which is the rate at which money changes hands in the economy. Therefore, if the Fed can control the money supply, it can indirectly influence nominal GDP. However, it should be noted that this model has limitations and may not fully capture the complexity of the economy.

If You Assume That the Equation of Exchange Is a Dependable