Current FAQs
Informing the public about the Federal Reserve
Featured Questions
Money, Interest Rates, and Monetary Policy
- Why doesn't the Federal Reserve lend to state and local governments?
- Aren't the Federal Reserve's purchases of Treasury securities effectively financing a large part of the federal deficit?
- How does monetary policy influence inflation and employment?
- How will the Federal Reserve ensure its securities purchases won't lead to excessive inflation?
- Why doesn't the Federal Reserve just buy Treasury securities directly from the U.S. Treasury?
- Why did the Federal Reserve begin purchasing a lot of Treasury securities in November 2010?
- What are the Federal Reserve's objectives in conducting monetary policy?
- What is the money supply? Is it important?
- What is the difference between monetary policy and fiscal policy, and how are they related?
Last update:
March 30, 2012

