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Hey Class, one economic policy that has caught my attention is the approach taken by the United States to tackle inflation. Since 2023 the Federal Reserve has been actively working to control inflation, which has consistently remained above the 2 percent target set by the Federal Open Market Committee. According to a report submitted to Congress although there have been some improvements, due to reduced supply bottlenecks and declining energy prices inflation continues to be a concern. The World Economic Forum, in collaboration with The Brookings Institution also highlighted that policymakers in the US are making efforts to bring inflation under control. This ongoing struggle demonstrates how complex and persistent inflationary pressures are within our economy. Deloitte Insights provided a perspective on this matter acknowledging that despite challenges such, as rising interest rates aimed at combating inflation uncertain federal budget policies and increasing geopolitical tensions the US economy managed to sustain its growth.This indicates that the strategy to tackle inflation is a part of an approach that addresses multiple interconnected factors. Additionally the Federal Reserve Bank of San Francisco has discussed the concept of a multiplier, which suggests that an increase, in the deficit equivalent to 1% of GDP leads to a corresponding 1% increase in GDP. This concept helps determine whether projected changes in the primary deficit act as either a hindrance or support to term economic growth revealing the wider implications of fiscal policy on economic performance.

When examining these policies from various angles;

Effectiveness; The policy has shown some effectiveness, in curbing inflation. It still remains above the desired level indicating partial success.

Efficiency; Implementing this policy requires balancing to prevent cooling of the economy while addressing inflation highlighting its intricate and delicate nature.

Ethics; The goal is to ensure prices and protect the purchasing power of citizens, which’s ethically responsible as it prioritizes the economic well being of people.

Political Feasibility; This aspect forms a part of the Federal Reserves responsibilities making it politically viable, as an accepted approach to managing the economy.

Social Feasibility; Although necessary the increase in interest rates can make loans more expensive impacting areas like housing, education and business financing. This might lead to resistance or opposition.

Fairness; While this policy affects everyone it can have an impact on those with variable rate debts or those seeking loans. This may raise concerns about fairness in its implementation.

Maintainability; Ongoing adjustments and careful monitoring are required for this policy. It indicates that while maintainable it demands resources and expertise.
These policies and my analyses illustrate the interaction of strategies aimed at fostering stability and growth in response to persistent inflationary pressures.


Monetary policy report – March 2023. Board of Governors of the Federal Reserve System. (n.d.).

What key economic policy developments happened in 2022 and what Lies ahead in 2023?. World Economic Forum. (n.d.-a).

Deloitte. (2023, December 15). United States Economic Forecast. Deloitte Insights.

Dcallahan. (2023, November 13). Recent and near-term fiscal policy: Headwind or tailwind?. San Francisco Fed.


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