How to vote if you were serving on the FOMC
If you were serving on the FOMC committee, how would you vote on Mar 15-16 meeting?
Reading: Please go to the Fed’s website:
http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm
and locate the latest released minutes (released on February 17, 2016) of the FOMC Jan 26-27 meeting.
Please read the minutes and the script, and answer the following questions with your own words.
1. What did the committee members comment on current economy: a. price stability (i.e., inflation level); b. unemployment rate; c. economic growth rate, personal consumption expenditures, housing market, etc.? (Please be specific)2. What is the members’ review on financial situation: a. key interest rates such as federal funds rate, long-term interest rate, Treasury bond yield, and foreign exchange rates? (Please be specific)3. What actions does the Fed plan to take till their next meeting? For example, what open market operations will the Fed use? Will the Fed change the target federal funds rate?(Please be specific)
4. What is the committee members’ current assessment of any risk that our economy or the financial system is facing? Read staff economy outlook section and participants’ views section to report the potential risk, if any, that our economy may face in the near future.
5. Please incorporate your own assessment and the FOMC’s assessment on current economy and financial situation and what you have learned in our in-class discussion to answer the following questions: what kind of committee policy action should the FOMC take in their next meeting (Mar 15-16). If the FOMC were to continue the current action, would you vote YES or NO? For example, should the Fed raise interest rate? Please explain your vote and reason in detail.
- Format: Please attach your assignment as a word file and submit it as a Turnitin assignment in Blackboard.
- You may discuss this assignment with your classmates. However, please do not share or copy others’ homework.
- Plagiarism – Do not use published and/or unpublished material without acknowledging the source.
- Please paraphrase and cite if you use information from another source.
Cheating or plagiarism will earn you 0 points on this assignment and may expose you to additional penalty.Bonus points: If you conduct thorough investigation of the topic and provide solid analysis in your report, you may earn bonus points up to 50 points!
(So I want you you to do that to get the bonus points)
(I need it this Friday plz)
