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After an economy begins to recover, suppose that the Fed quickly raises interest rates back to the level seen before the recession in order to prevent inflation. Which type of Fed policymaker would be more likely to favor this action

Sagot :

Nyctalus

Answer:

Hawks

Explanation:

In simple words, A hawk, sometimes recognized as just an inflation hawk, can be understood as the policymaker or analyst who is primarily obsessed with lending rates as their contribute to monetary policy.

To maintain inflation in control, a hawk normally prefers reasonably high interest rates. In other terms, redskins are less worried with global development just like they are with downturn risk brought to pressure by rising inflation. 

Thus, from the above we can conclude that the correct answer is hawk.

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