The purpose of this paper is to analyze an article on the work of the US Federal Reserve and its fight against recessions. The article’s main idea is to review the tools available to the Federal Reserve to maintain the American economy’s stability. Among such methods, one can distinguish a double mandate from Congress, which allows working to keep stable prices in the economy and fight unemployment.
In the context of the first objective, the Reserve can buy assets, make loans and carry out other monetary policy operations. In general, these instruments can be divided into four categories: open market transactions, reduced capital conditions, discount lending, and management of expectations (Anderson, 2020). Currently, most of the mentioned methods have already been deployed due to the aggravated epidemiological situation and restrictions on the part of the healthcare sector.
This article is devoted to raising awareness of the work of an essential public financial institution. In this context, the author’s perspective is relatively neutral since she is mostly a narrator without an opinion. However, she perfectly copes with this task, providing a compilation of facts collected in a compact and accessible form, making it easier to understand. Besides, most of the definitions, events, and facts used in the text are supported by links to sources, allowing getting more information on these topics. Thus, the author uses them to defend her article by substantiating the submitted material.
The paper concludes with a personal observation made by the author through an analysis of the Federal Reserve’s work. The view that if current trends persist, the Reserve will not be able to deal with future recessions effectively is also noted in other studies (Reifschneider & Wilcox, 2020). Thus, the author’s opinion reflects reality and can be considered authoritative.
However, this article lacks sufficient citations and third-party sources. Although the number of cross-references is large, none leads to a third-party resource or points to an article used in work. Therefore, this paper can be improved by adding additional sources and research like Reifschneider and Wilcox’s analysis. However, the article’s facts are accurate and can be verified using official sources, so the article is mostly correct but requires improvement.
References
Anderson, S. (2020). How the Federal Reserve fights recessions. Investopedia. Web.
Reifschneider, D., & Wilcox, D. W. (2020). A program for strengthening the Federal Reserve’s ability to fight the next recession. Peterson Institute for International Economics Working Paper, (20-5), 1-40. Web.