Do you believe the Feds approach to keeping inflation under

Solution

Yes, it impacts employment in a negative in the short run. But it in the long run prudential fiscal policy provides better employment.
This is because Fed tries to check inflation by reducing liquidity of the economy. This can be done through Open market operation in which when the Fed sells government securities and takes the liquidity out of the economy. It can also increase interest rate which increases interest rate of the banking system. Hence loans are not available to corporate and small business at lower rates. Moreover by increasing the reserve ratio more amounts of cash and liquid assets have to be kept with the Fed leaving fewer amounts for loans.
If firm have less access to cash they will spend less on expansion, capital expenditure, new projects, etc. Moreover demand for machines, tool, equipment will decrease. This will result in manpower firing or reduced job firing as less new projects mean lesser job opportunities. If interest goes up the exchange rate goes up too so the import industry will be hit. US has lot of imports of import industry will be hit and job opportunities will shrink.

But such limitations are for the short term but better government measures are necessary to improve employment. Fiscal policy has more impact than monetary policy in the long run.

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