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The Federal Reserve System and the Economy: An Analysis This four-page graduate paper characterizes the state of the economy and examines whether the Federal Reserve is more concerned about high inflation, the possibility of a recession, or other economic other issues. The author identifies the stated direction of recent Federal Reserve monetary policy and discusses what policy actions the Federal Reserve has taken to confirm that direction. He concludes that if the economy hasn't rebounded by the end of the third quarter of 2003, another rate cut could be on the way, as well as further steps, for rate cuts have not always been very effective. But if consumer spending holds up and job gains continue, rates will likely not be reduced.
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