Short Case Scenario 15-1

Essay

Short Case Scenario 15-1
John Smith, a Minnesota native, has recently been elected to the U.S. House of Representatives. John, a long-time college professor, was elected on a platform of educational reform. Somehow, John finds himself appointed to the Joint Economic and Financial Services Committees. John is having a hard time understanding the testimony before each committee, but is hesitant to ask too many questions.
-A recent report to the House reveals that unemployment continues to be high and that the economy is "sluggish." How might the Federal Reserve react to this information?