Pretend the first quarter statistics of 2022 show the US economy has an increase in inflation of 8.4%. In the first quarter, GDP has increased by 4.2% annual rate, and the unemployment rate is falling and hit 3.5%. As an economic advisor to the Federal Reserve, what advice would you give to Jerome Powell with regards to the tools of monetary policy. Write a paragraph explaining your recommendations, describing how three of the four tools (your choice which ones you use) will work to change aggregate demand and affect the other economic indicators listed above. Be sure to describe what needs to be done with each tool and the outcome it will produce.
