How are Fiscal Policy and the Federal Reserve similar?

Fiscal policy and Federal reserve both are governed by federal government. Fiscal policies are tax and policies of government and federal reserves are the agency of federal government run independently.

Explanation:

Fiscal policy refers to the tax rates and policies of government to control market demand. Interest rate and supply of commodities does not determined by Fiscal policy. During monetary recession and inflation both the fiscal policy and monetary policy regulates the market economy.

Federal reserve in macro economics has a great control over employment and price stability. Market's economy is dependent on employment on large scale. Price is also fluctuate with demand and supply of particular commodity. Therefore to fixed tax rate and to set policies federal reserve and fiscal policies are same.

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