Interpret the fed's actions if the effective federal funds rate was .07 and the  taylor rule federal funds rate was 2.21%

Suppose that inflation is 2 percent, the federal funds rate is 4 percent, and real GDP falls 2 percent below potential GDP. According to the Taylor rule, in what direction and by how much should the Fed change the real federal funds rate?

Suppose the current price level is 149.2 and one year ago the price level was 146.7. Output is currently 12,773.3 and potential output is 13,534.2 (both in billions of 2009 dollars). a. What value of the federal funds rate would the Fed choose if it follows the Taylor rule? i = (report your answer in decimals to three places)

Use the Taylor rule to determine the target federal funds rate if current inflation is 2% and real GDP is 1% below potential.

Use the Fed rule-of-thumb to predict the Fed's target for the federal funds rate for each of the following scenarios if its estimate of the neutral interest rate is 2%.   a. A recession hits the economy leading output to be 0.75% below potential output and inflation to fall to 1%.   b. An increase in consumer and business confidence pushes the economy to produce output at 2% above potential output while inflation rises to 3.5%.

Compute the target fed funds rate if the equilibrium fed funds rate is 1% current inflation is 1% target inflation is 2% and the output is 2% below its potential level

Monetary policy actions by the Fed are

Suppose real GDP is forecasted to grow by 2.482.48%, the velocity of money has been stable, and the Fed announces an inflation target of 3.303.30%. What is the largest money growth rate the Fed could implement and still achieve its inflation target?

Explain the FED role to cope with rising inflation.

Comment on the Fed's current monetary policy based on Powell's testimony.