Why is it easier for the fed to deal with demand shocks than with supply shocks?

The Federal Reserve can more easily address demand shocks because it has tools, like adjusting interest rates and implementing monetary policy, that directly influence consumer and business spending. In contrast, supply shocks, such as those caused by natural disasters or geopolitical events, affect production capacity and costs, making it harder for the Fed to stimulate the economy without risking inflation. Additionally, supply shocks often require structural changes in the economy, which monetary policy cannot directly address. Thus, the Fed's ability to respond effectively is limited in the face of supply-side disruptions.