Monetary Policy: The Fed's Economic OversightModern monetary policy is defined as “[t]he actions of a central bank, currency board, or other regulatory committee which determines the size and growth rate of the money supply in a country, which in turn affects interest rates. Monetary policy is maintained through actions such as raising the interest rate or changing the amount of money banks are required to keep in the vault, also known as bank reserves” (Investopedia). Meanwhile, fiscal policy is determined by government actions and how money is spent and raised, not by a central bank. The interactions of modern monetary policy between the central bank, the treasury and the financial system coincide with each other, but still need further reforms to make the policy more effective given the current changes in the economy. Two key objectives of maximizing employment and stabilizing prices were established by Congress in the Federal Reserve Act regarding monetary policy. These goals, known as the Federal Reserve's dual mandate, represent a long-term goal for monetary policy. To achieve this monetary policy goal, the Federal Reserve was established by Congress as an independent agency to ensure that decisions are focused exclusively on achieving the dual mandate and are free from political influence. “The Federal Reserve's dual mandate and Federal Reserve independence provisions are two key factors that help protect against adverse outcomes in the United States” (FRB). Currently, the Federal Reserve, led by Chairman Ben Bernanke, is responsible for monetary policy in the United States. The Fed is not only in charge of monitoring interest rates for the country, but has also maintained... half of document ......com/la-county-nonpartisan-in-los-angeles/american- institute- monetary-ami-history-of-money-monetary-reform-public-action-3-of-6>Morris, David P. "What the Fed's 'Operation Twist' Means to You." USA TODAY. NP, 22 September. 2011. Network. December 12, 2011.Consumer/50511514/1>.Mallin, Jay. "Federal Reserve (Fed) - The New York Times." Times Topics - The New York Times. December 14, 2011. Web. December 14, 2011. “Modern Monetary Policy.” Investipedia. 2011. Network. December 12, 2011."Introduction of the American Monetary Act." 18 July 2010. Web. 10 December. 2011. .