From the perspective of a Wall Street analyst or portfolio manager, interpret the following hypothetical...

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Accounting

From the perspective of a Wall Street analyst or portfolio manager, interpret the following hypothetical statements:

  • "The Fed's future monetary policy will be dependent on the economic indicators to be reported this week."
  • "The Fed's role is to take the punch bowl away just as the party is coming alive."
  • "Inflation is likely to increase because real short-term interest rates are currently negative."

Additionally, explain how the Fed affects monetary policy, including its influence on interest rates and securities prices. Identify important factors of Fed monetary policy, describing tools the Fed uses.

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