Who Controls Fiscal Policy?

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In the United States, fiscal policy is controlled by the executive and legislative branches of the government. Congress and the president's administration have the final say regarding fiscal policy.

Federal policy is a blanket term that is used to refer to the tax and expenditure of the federal government. Taxes and spending are the main tools that policy makers use to manipulate demand in the economy. These tools have an impact on the fiscal position of the government as they cause the budget deficit to go up. Therefore, the government will be required to borrow money to cover the deficit.