Banks and Economics Identify at least three problems facing the FED in achieving its goals of monetary policy and give your recommendations on how to deal with each of the problems you list. One of the biggest problems currently facing the FED is that while in theory it is considered to be highly decentralized even though in reality it is highly centralized. This not only causes many problems but being centralized and having to look over the world’s largest economy is not an easy task. When an institution or organisation is centralized it makes the it easier for that institution to make radial changes quickly, however the downside is that since the decision making is centralized, it is very difficult for the FED to be flexible with and...The end:
.....y Secretary too much power, in the end it was determined that the FED needed to have more teeth an the ability to make the changes that are necessary in a timely manner (Keenan, 2008). And since the steps that are taken by the FED have an affect in the long term or long after the fact, it was thought necessary to give the Fed more powers and thus the current administration is working on the same (Delaney, 2007). REFERENCES Delaney, T. (2007, November). “S.O.S. Sorting out Subprime : Does Distress in the Housing Market Spell Lasting Trouble or Has It Created Prime Opportunities to Put Your Money to Work?”. Black Enterprise, 38, pp. 76. Keenan, C. (2008, June). “The Bears Are Back: Is There Going to Be Trouble?”. Black Enterprise, 38, pp. 52.