Question

What is the role of the Federal Reserve? To ______ economic recessions.
Answered by GPT-4o mini
The role of the Federal Reserve is to **manage** economic recessions. This involves conducting monetary policy to influence money supply and interest rates, aiming to promote maximum employment, stable prices, and moderate long-term interest rates. During economic downturns, the Federal Reserve may lower interest rates, implement quantitative easing, or employ other measures to stimulate economic activity and encourage borrowing and spending.