Monetary Policy Paper.

The goals of the U. S. Federal Reserve monetary policy include the promotion of sustainable economic growth, full employment, and stable prices. The Federal Reserve's three main parts of monetary policy are open market operations, the discount rate and reserve requirements. Open market operations involve the buying and selling of U. S. government securities. The discount rate is the interest rate charged by Federal Reserve Banks to depository institutions on short-term loans. Reserve requirements are …

…pace that is likely to be measured." Nonetheless, the Committee will respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability. References Seiders, David F. July 27, 2005, The U. S. economy definitely is out of the woods, http://www.nahmonday.com The Federal Reserve Board, July 20, 2005, Monetary Policy and the Economic Outlook http://www.federalreserve.gov The Federal Reserve Board, July 20, 2005, Testimony of Chairman Alan Greenspan http://www.federalreserve.gov