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Essay Galaxy - U.S Monetary Policy in 1995 U.S Monetary Policy in 1995

When Alan Greenspan presented the Federal Reserve's semi-annual report on monetary policy to the Subcommittee on Domestic and International Monetary Policy, the Committee on Banking and Financial Services, and the U.S. House of Representatives on February, Dr. Greenspan touted a cautionary yet favorable view of the U.S. economy. He states that "With inflationary pressures apparently receding, the previous degree of restraint in monetary policy was no longer deemed necessary, and the FOMC consequently implemented a small reduction in reserve market pressures last July." (Greenspan, 1996, Speech) During the Summer and Fall of 1995, the economy experienced a strengthening of aggregate demand growth. According to Greenspan, this increase in aggregate demand brought finished goods inventories and sales into near equilibrium. The Fed's....

Number Of Pages: 5 Number Of Words: 1367

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