The conversation between human and AI assistant.
Why is inflation pretty low in the USA despite unemployment being pretty low as well as loose U.S. monetary policy?
I see. And how does the Federal Reserve come into play with controlling inflation?
The Federal Reserve uses monetary policy tools such as interest rates and money supply to try to keep inflation in check. By adjusting these tools, they can influence the amount of money in circulation and the cost of borrowing, which can in turn impact inflation.