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What does it mean when the Federal Reserve uses its “tools”?

Mar 29, 2022
The Fed’s tools can only go so far. “All of this activity relies on the other institution at the end of the transaction,” said economics professor Nina Eichacker.
Fed Chair Jerome Powell speaking last week at the NABE Economic Policy Conference. "We aim to use our tools to moderate demand growth, thereby facilitating continued, sustainable increases in employment and wages," he said.
Samuel Corum/Getty Images

Federal Reserve lifts interest rates a quarter point

Mar 16, 2022
Citing high inflation and the tight labor market, Fed Chair Jerome Powell announces the first rate hike since 2018.
Powell: The Fed is "committed to bringing inflation back down and also sustaining the economic expansion.”
Tom Williams-Pool/Getty Images