In ten pages this paper discusses the history of the Federal Reserve Board and its success is evaluated by various experts. Seven sources are cited in the bibliography.
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people wait nervously--stock brokers, ordinary citizens, business executives, everyone--to see whether or not interest rates will be lowered or elevated. It is this manipulation of the economy that seems to
be so important both in terms of how the interest rate actually affects it and also in terms of consumer confidence and psychological perception. Interest rates affect a variety
of things from mortgages to credit card rates and so when the rate is elevated or lowered, it has a domino effect. It also has a psychological effect as people
perceive the economy to be one way or another based upon the behavior of the Federal Reserve Board. Although the market does react to the news as it comes after
an anticipated meeting, there are some who say to ignore the advice. Why? The Federal Reserve Board (FRB) simply sets short term interest rates and this does affect stock prices,
but Glassman contends that people should not pay attention to the ups and downs of interest rates (48). He adds that the U.S. has had nine or ten recessions
since the end of World War II, and all had been short lived, and followed by a quick recovery (48). Also, the economy has grown at a rate of approximately
3% anyway, after inflation (48). So the author assumes that the Fed will do a good job in maintaining the value of the dollar, something that is its primary
task anyway, and so it should not play a role in long terms decisions (48). Another assumption is that the economy will continue to grow at the same rate
it has for about the last 60 years, even though there will be dips (48). Essentially, the author contends that the role of the Federal Reserve is not really tumultuous