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The Federal Reserve’s Current Monetary Policy [WLOs: 4] [CLOs: 6, 7] The Federal Reserve Act requires the Federal Reserve Board to submit written reports to Congress containing discussions of “the...

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The Federal Reserve’s Current Monetary Policy [WLOs: 4] [CLOs: 6, 7]

The Federal Reserve Act requires the Federal Reserve Board to submit written reports to Congress containing discussions of “the conduct of monetary policy and economic developments and prospects for the future” (Congressional Report,(Links to an external site.)Visit theFederal Reserve(Links to an external site.)website and selectMonetary Policy and then to retrieve the current annual report.

  • Briefly describe the policy actions of the Board of Governors during the most recent period.
  • Describe how the U.S. economy has performed recently based on the opinion of the Federal Reserve.
  • Evaluate the Federal Reserve’s current monetary policy. If you were the monetary policy decision maker, what would you do differently? Why or why not?
  • Explain whether you agree or disagree with the Federal Reserve taking action to intervene when the economy is not well-functioning. Why or why not?
  • Appraise how the current Federal Reserve’s monetary policy has been affecting the financial markets and institutions.

The Federal Reserve’s Current Monetary Policy paper

  • Must be three to four double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in theAshford Writing Center(Links to an external site.).
  • Must include a separate title page with the following:
    • Title of paper
    • Student’s name
    • Course name and number
    • Instructor’s name
    • Date submitted
  • Must use at least three scholarly, peer-reviewed, and/or other credible sources in addition to the course text.
    • TheScholarly, Peer Reviewed, and Other Credible Sources(Links to an external site.)table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular assignment.
  • Must document all sources in APA style as outlined in the Ashford Writing Center.
  • Must include a separate references page that is formatted according to APA style as outlined in the Ashford Writing Center

Federal Reserve Website: https://www.federalreserve.gov/

Answered Same Day May 24, 2021

Solution

Komalavalli answered on May 25 2021
143 Votes
3
The Federal Reserve’s Cu
ent Monetary Policy
During July 2019 the board of governors had decided to follow previous monetary poly regime of federal funds rate 2‑1/4 to 2-1/2 percent. These rates were maintained unchanged due to solid economic growth rate increased at an annual growth rate of 3.1 percent. Strong labor market as a result of decrease in unemployment 3.6 percent rate and the inflation came down to 1.5 percent which is below the committee’s objective of 2 percent.
Cu
ently global economy faces health crisis of corona virus out
eak. The committee is trying to achieve their goal of price stability and maximum employment. Ongoing corona virus out
eak heavily impacted the employment, inflation and economic activity. Several economic activities were slowed and large number of people loses their job. Flow of credit to US Business and households were affected by this issue. In order tackle the pandemic the federal committee has decided to maintain the target range for the federal fund rates at 0 to ¼ percent
Performance of US economy:
According to federal reserve report of 2020 US economic growth rate Real gross domestic product(RGDP) grows at a moderate rate during second half of 2019.This period growth was slower compared to first half of 2019 and 2018.Business investment were declined due to uncertainty of trade policy and also due to weak growth in global economy. Consumption expenditure grows at moderate rate .Unemployment rate have been reduced from 3.9% in 2018 to 3.5 % in 2019 which indicates the strength of labor market. The inflation rates were also remained below 2 percent in December 2019. Federal Open Market Committee (FOMC) has lowered the target range a cumulative of 75 basis points,
inging it to...
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