The Federal Reserve has changed the way it implements monetary policy. For example, the Fed’s new tools include interest on reserves and the overnight reverse repurchase agreement facility. But many of the recent changes are not reflected in resources for teaching monetary policy to college and high school students. This lecture helps fill the gap by providing an overview of the Fed's ample reserves regime, including a description of how the Fed uses its new monetary policy tools to move the federal funds rate into the FOMC’s target range.

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