The Federal Reserve's actions can lead to economic instability from "summary" of Free to Choose by Milton Friedman
The Federal Reserve is an influential institution in the United States, with the power to shape the country's economic landscape. Its decisions on interest rates, money supply, and other monetary policies can have far-reaching consequences that impact businesses, consumers, and the overall economy. While the Federal Reserve aims to promote economic stability and growth, its actions are not always successful in achieving these goals. In fact, the Fed's interventions can sometimes have unintended consequences that lead to economic instability. One way in which the Federal Reserve can inadvertently destabilize the economy is through its management of interest rates. By raising or lowering interest rates, the Fed seeks to control inflation and spur economic activity. However, if the Fed misjudge...
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