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The Fed's Playbook: Routine Policy vs. Crisis Mode

Macro and the Federal Reserve • Beginner Investing • 7 min

Everything else in this module fits into one of two genuinely different modes the Fed operates in: routine policy during normal economic conditions, and crisis mode when the financial system itself is under acute stress. Routine mode is what the Fed does the vast majority of the time: gradual, incremental federal funds rate adjustments, guided by the dual mandate, decided through the standard FOMC process on a…

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