Why is it the Fed's responsibility to set interest rates, not national banks?
A. • The Fed is responsible for printing all money.
B. • There are not very many national banks, so few are qualified.
C. • The Fed consults national banks, but they do not make the final decisions.
D. • National banks are for profit, so they are not looking at the overall economy.
D. • National banks are for profit, so they are not looking at the overall economy.
Setting interest rates is a monetary policy tool used to manage inflation, employment, and overall economic stability. The Federal Reserve, as an independent entity, is responsible for making decisions that are in the best interest of the overall economy, rather than just maximizing profits like national banks. National banks may have their own interests in mind, which could conflict with the broader economic goals that the Fed aims to achieve.