Essays Tagged: "Federal Funds Rate"
Summary of the Federal Reserve's history and policy procedures
to the use of monetary aggregates as intermediate targets. In fact, the Fed was actually using the federal fund rate as its operating target, which, if income continued to rise unexpectedly, would ma ... o rise unexpectedly, would make money growth overshoot again, and vis versa. As a result, using the federal funds rate as an operating target promoted a procyclical monetary policy despite the Fed's l ...
Subjects: Businesss Research Papers
Importance of the Federal Market Commitee
Why is the FOMC important to US stability?The FOMC or Federal Market Committee is the Federal Reserves monetary policymaking body. Their responsibilities ... ticipate in policy discussions it is the Board of Governors who vote on the policy.This part of the Federal Reserve is vital towards our economy. Their efforts show direct results on our unemployment ... fforts of the FOMC these areas would be much worse off.The FOMC is also responsible for setting the Federal Funds Rates. This is crucial in determine how banks lend money to each other and set the ton ...
Subjects: Law & Government Essays
Wall Street Journal Article - Monetary Policy - Greg Ip, "Fed Chief Signals Rates Still To Rise," The Wall Street Journal, June 10, 2005, p. A4.
cite other risks such as: slowing productivity growth and evidence of increased pricing power. The federal funds rate has increased to 3% on its overnight loans since last June and will likely contin ... policy. Monetary policy injects money into the economy in order for consumption and investment. The Federal Reserve, a central bank that is an agency of the Federal government, conducts monetary polic ...
Subjects: Businesss Research Papers > Markets & Exchanges
The Federal Money Supply
y supply that is more liquid than the next measure; M1, M2, M3. To control this supply there is the Federal Reserve Bank, who has three methods to control the supply of money into the economy. The fir ... rst is the buying and selling of US treasury bonds and notes. The second is raising or lowering the federal funds rate. And the third is lowering or raising the reserve requirements. Each one of these ...
Subjects: Social Science Essays > Economics
Economic Indicators
everyone and every organization, governmental or private. The indicators are the housing industry, Federal Reserve actions, interest rates, the employee situation report, and gross domestic product.G ... ere is a rise in housing starts it likely means there is more money in the economy" (Wikipedia 2006)Federal Reserve ActionsThere are 12 banks that make up the Federal Reserve (Fed) and they are in reg ...
Subjects: Social Science Essays > Economics
Fed Funds
"Fed slashes federal funds rate by one-half percentage points"�. This is what many headlines read after th ... I will briefly describe what exactly cutting the interest rate means and what exactly it does. The federal funds rate by definition is the rate at which banks charge each other for inter-day or over- ... te at which banks charge each other for inter-day or over-night loans. Banks make loans through the federal funds market to insure that their reserves meet the quota. Banks are required to have a cert ...
Subjects: Businesss Research Papers
NASDAQ and S&P 500
l items seasonally adjusted; , millions of dollars seasonally adjusted; Civilian Unemployment Rate, Federal Funds Rate, percentage seasonally adjusted; seasonally adjusted; billions of dollars, Balanc ... Q market indexes. These statistics come from the Bureau of the Census, Bureau of Economic Analysis, Federal Reserve board of Governors and the US Department of Labor Bureau of Statistics. Regardless o ...
Subjects: Businesss Research Papers > Management
Federal Reserve Bank
is by affecting them indirectly with monetary policy by raising or lowering of interest rates. The federal-funds rate is the main monetary policy instrument of the Fed and it does not directly impact ...
Subjects: Social Science Essays > Economics
Monetary Policies and Macroeconomic Impacts on Business Operations
ion that will be examined within this paper along with other elements such as the tools used by the Federal Reserve to control money and how these tools influence the money supply. This paper will rev ... how macroeconomic impact on business operations.Tools Used to Control and Influence Money SupplyThe Federal Reserve controls the money supply as a way of changing interest rates in the economy. The th ...
Subjects: Social Science Essays > Economics
Macroeconomic Impact on Business Operations
rize the concepts presented. This will include a description of the tools used by the United States Federal Reserve to control the money supply and how each influences the money supply and subsequentl ... ance between economic growth, low inflation and a reasonable rate of unemployment.Tools Used by the Federal Reserve to Control the Money SupplySeveral key tools are described in the "Monetary Policy" ...
Subjects: Businesss Research Papers
Current Economic Financial Crises
include helping homeowners to refinance into more affordable mortgages; cutting the target for the federal funds rate; unveiling a plan to support the market for commercial paper; and offering govern ... y form of lending to major businesses and banks, continued to shrink according to a report from the Federal Reserve. Commercial paper is sold by major corporations and most of the nation's leading fin ...
Subjects: Social Science Essays > Economics
Outcome of the 2007 Financial Crisis : Inflation or Deflation?
hey have lent out billions to try to thaw a frozen credit market, and will probably drop the target federal funds rate to 0.5%. The national debt is now over $10 trillion, and climbing. However, consu ... he United States into Great Depression 2.Background of the Financial CrisisIn December of 2008, the Federal Open Market Committee decided to lower the Fed Funds target rate to a range between 0-0.25%, ...
Subjects: Businesss Research Papers > Markets & Exchanges
Money and Monetary Policy
need help understanding the following MBA macroeconomic problems:A) What are the tools used by the Federal Reserve to control the money supply?The term "monetary policy" refers to the actions underta ... y supply?The term "monetary policy" refers to the actions undertaken by a central bank, such as the Federal Reserve, to influence the availability and cost of money and credit to help promote national ...
Subjects: Social Science Essays > Economics
larson Inc. Scenario Objectives
ition, the per capita output is declining from $46,800 in 2007 to $39,560 in 2008. In addition, the Federal Funds Rate and Discount rate are at relatively low rates at 0.25 and 0.50. Compared to Germa ... e expected to increase over the next five years. When there is expansionary phase in the market the Federal Reserve will increase the interest rates to reduce the level of inflation.6. Describe the bu ...
Subjects: Businesss Research Papers
Final Business Recommendation, Based on Economic Projections
om $46,800 in 2007 to $32,560 in 2008 (University of Phoenix Material Larson Inc). In addition, the Federal Funds Rate and Discount rate are at relatively low rates at 0.25 and 0.50 compared to German ... recoveries is inflation; as consumer spending rises, as the price naturally increases. Despite the Federal Reserve's intention to raise interest rates at the right moment to curb rampant inflation (B ...
Subjects: Businesss Research Papers
Macroeconomic Impact on Business Operations
such as gross domestic product (GDP), interest rates, inflation, and unemployment. According to the Federal Reserve, the Board of Governors of the Federal Reserve System and the Federal Open Market Co ... ectively the goals of maximum employment, stable prices, and moderate long-term interest rates. The Federal Reserve uses two means to drive macroeconomics, fiscal and monetary policy. This paper's foc ...
Subjects: Businesss Research Papers > Management > Human Resource Management