Role Of The Fed

Wall Street seems to have a favorable view of the appointment of Janet Yellen to head the Federal Reserve. Yellen has been at the Fed for a number of years and her policy views are fairly well known. She is a democrat and favors an aggressive monetary policy. In 1977, Congress passed a law which gave the Federal Reserve a dual mandate; maximize employment and stabilize prices. This is easier said than done. The primary tool of the Fed is to stimulate the economy is by increasing the money sup...