What is the federal funds rate and how is it used?
How it's used: Like the federal discount rate, the federal funds rate is used to control the supply of available funds and hence, inflation and other interest rates. Raising the rate makes it more expensive to borrow.
What is the difference between the state and federal government?
The state governments had virtually unlimited powers, but limited amounts of money. It could not "print money" to fund its programs, because only the federal government had the power to do such. On the other hand, the federal government only had 17 powers and it had no reason to use inflation as a vehicle to fund its programs.
What will the future of the state-federal relationship look like?
The division of authority between the states and federal government is a constantly evolving system of dynamic tension. With the recent changes in our nation’s capital, the state-federal relationship is once again at the center of policy debates. The future will likely see both cooperation and conflict. That’s nothing new.
How much government debt does the US have?
The $28 trillion gross federal debt equals debt held by the public plus debt held by federal trust funds and other government accounts. In very basic terms, this can be thought of as debt that the government owes to others plus debt that it owes to itself.