A monetary policy target is a variable that the Fed can affect directly,which then affects one or more of the Fed's policy goals.

Question

Quizplus · Accepted Answer

A monetary policy target is a specific variable, such as the federal funds rate or money supply, that the Federal Reserve can adjust in order to achieve its policy goals, such as promoting full employment, stabilizing prices, and maintaining financial stability. By controlling the monetary policy target, the Fed can influence economic conditions and achieve its policy objectives.

A Monetary Policy Target Is a Variable That the Fed