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if the fed wants to increase the money supply, it can the interest rate it pays on reserves.
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Discover the power of the Federal Reserve's interest rate adjustments. Learn how the Fed can manipulate the money supply by altering the interest rate it pays on reserves, and how this impacts the federal funds rate. Understand the role of monetary policy in controlling inflation and the importance of targeting the federal funds rate. Get a concise explanation of the Fed's superpower in just one minute.
