What tools can the Federal Reserve use to prevent a recession?

Betty Liu, Executive Vice Chairman for NYSE Group, explains:

What is the Federal Reserve's role in the economy?

So, the Federal Reserve is the central bank of the United States. It's an independent government institution. And it has a dual mandate. The first one is to maximize employment. And the second one is to maintain price stability. So, it has four main functions. The first one is to administer monetary policy. That is done through managing the money supply and also raising and lowering interest rates. It also supervises and regulates banks, fosters payments and services and encourages financial stability.


What tools can the Fed use to prevent a recession?

Well, the Fed has several ways, several tools that it can use to prevent a recession. But the major one is interest rates, cutting interest rates. So, the Fed can cut the benchmark Fed funds rate, that is the borrowing rate, or the lending rate that banks use. Now, if they cut that, that means that that will lower costs for companies and others and that will encourage the economy and stimulate investment.

Kevin Sneader, global managing partner of McKinsey & Company, answers the question: Are CEOs getting real about climate change?

The answer, yes. Why? One, it's personal. Many have watched with horror the wildfires that took place recently. Others have even been evacuated. And for some, the snow set in Davos, they experienced incredibly mild temperatures that laid all to quip that climate change really has arrived. But the other reasons are a growing understanding of the nature of climate change.

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Welcome to the eleventh parliamentary elections in Iran's 40-year history.

Want to run for a seat? You can…if you're an Iranian citizen between the ages of 30 and 75, hold a master's degree or its equivalent, have finished your military service (if you're a man), and have demonstrated a commitment to Islam. Check all these boxes, and you can ask permission to run for office.

Permission comes from the 12-member Guardian Council, a body composed of six clerics appointed by Supreme Leader Ayatollah Ali Khamenei and six jurists that Khamenei appoints indirectly. If the Council says yes, you can win a seat in parliament. If they say no, you can't.

This parliament, also called the Majlis, does have real power. It approves the national budget, drafts legislation and sends it to the Guardian Council for approval, ratifies treaties, approves ministers and can question the president. The current Majlis represents a wide range of values and opinions.

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As the head of a leading management consulting firm, global managing partner of McKinsey & Company Kevin Sneader has an inside view into the challenges facing the world's top executives. Every Thursday, Sneader will address questions about key issues like attracting and retaining talent, growing revenue, navigating change, staying ahead of the competition, and corporate responsibility – all in 60 seconds.

GZERO's Alex Kliment interviews New Yorker correspondent and author Joshua Yaffa. The two discuss Yaffa's new book, Between Two Fires, about what life is like for Russians today. They also sample some vodka at a famous Russian restaurant in NYC, of course!