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...... Focused on cutting interest rates in order to obstruct economic decline and to prevent the destructive incursion of inflation, the Federal Reserve acted independently to counteract mild or regressive growth patterns. Since January 2001, the Federal Reserve [had] reduced its benchmark policy interest rate, the federal funds rate, from 6.52% in September 2000 to a [2002] level of 1.75%. (Walsh, 1) This appeal to monetary policy however would prove ill-equipped to provide opportunities for growth. Instead, it has served as a preventative measure to further decline and the downward spiral of diminished dollar value, but only mildly in that
Today, the Federal Reserve has engaged in a number of practices that though theoretically curative with respect to the problems created across the last decade, are instead helping to realize the pattern of inflation that has caused the dollar struggles with respect to the foreign exchange rate. As interest rates rise inexorable-particularly as a product of reaching bottom during the waning days of the Bush Administrationthe Federal Reserve has been engaged in a massive buy-off of bonds and treasuries from citizens. To many observers and economists, this move which is intended to place more liquid money into the economy is

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