Motivated policymakers to raise the fed funds rate

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Between January and December 1994, U.S. unemployment fell from 6.7 percent to 5.4 percent of the labor force. The Federal Reserve, the nation's monetary-policymaking authority, took active measures beginning in February 1994 to raise short-term interest rates. What might have motivated policymakers to raise the Fed Funds rate and what were they hoping to accomplish?

Reference no: EM13862720

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