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Obviously, that number will never be zero—in a dynamic, ever-changing economy like ours, people will get laid off and quit jobs, and new people will enter the workforce. So with the current unemployment rate at 6.3 percent, there’s still a way to go before we’re at full employment. As house prices have climbed over the past few years, the number of borrowers underwater has come way down.Combined with the increase in jobs, that means fewer mortgages are going into foreclosure.Obviously, when you invite a Fed president to speak, you’re expecting to hear about the economy and monetary policy.
The Fed conducted emergency lending operations that went beyond the scope of previous precedents.For example, announcing that interest rates likely would remain low for an extended period could cause listeners to think that the government expected the economy to stay weak, and therefore inspire consumers and investors to cut back on their activity until the situation improves.Monetary policy can take on a more activist role as events warrant.Typically, the Federal Reserve controls monetary policy by controlling the short-term nominal interest rate and managing the reserve supply by buying and selling U. Sometimes, monetary policy can spur growth by keeping interest low. That in turn lowered the cost of borrowing for consumers, and helped spur economic growth.regarding its expectations for how interest rates will move in the future.