Describe the fed''s tendency to lean against the wind

Reference no: EM131302588

1. Describe the Fed's tendency to "lean against the wind." Do the Fed's policies tend to stabilize or destabilize the economy?

2. [Related to the Economics in Practice on p. 261] In August 2010, the Fed's discount rate was 0.75 percent and the federal funds rate was 0.25 percent, with a Fed target of 0-0.25 percent. The Economics in Practice states that all of the major investment banks employ economists to help them forecast what the Fed will do, and in mid-2010, many of these economists pushed back their expectations of when the Fed would raise interest rates, citing lower-than-anticipated inflation expectations, slow job growth, and an overall weak economy as reasons for the delay in rate increases. Go to www.frb.gov, www.bea.gov, and www.bls.gov to see what has happened to interest rates, the inflation rate, the unemployment rate, and GDP since August 2010. Were the economists' forecasts of the Fed delaying interest rate increases until 2011 correct? Describe any apparent correlation between the changes in interest rates and changes in the inflation rate, the unemployment rate, and GDP since August 2010.

Reference no: EM131302588

Questions Cloud

How would use address this troublesome trend : The focus of the research paper is Data Leakage. How does data leakage occur in an organization? What are the common causes of this problem? How would use address this troublesome trend?

Explain potential issue surrounding the death of johns wife : Analyze the potential issue surrounding the death of John's wife and other potential litigants against PharmaCARE as a result of AD23.

What is current yield or cost of the preferred stock : Wallace Container Company issued $100 par value preferred stock 10 years ago. The stock provided a 7 percent yield at the time of issue. The preferred stock is now selling for $80. What is the current yield or cost of the preferred stock?

Designing and managing the supply chain : What is involved with designing and managing the supply chain?

Describe the fed''s tendency to lean against the wind : Describe any apparent correlation between the changes in interest rates and changes in the inflation rate, the unemployment rate, and GDP since August 2010.

Discuss how work groups of the future : a. Discuss how work groups of the future, including management, will be cross-functional and self-managed. b. Give examples of cross-functional teams used in other companies.

Compare dsl-cable internet connections based on availability : From the second e-Activity, examine the major pros and cons of a DSL and a cable Internet connection. Compare DSL and cable Internet connections based on availability, consistent high speed, reliability, security, and price. Determine the Internet..

What would you expect the layout of a producing facility : What would you expect the layout of a producing facility to look like (in other words, what is the process layout for such an operation)? What would determine when someone had finished working on one of these products?

Discuss at least three skills for managing personnel : Propose at least three components of effective implementation of succession planning. Discuss at least three skills for managing personnel through turbulence, providing a rationale for each skill.

User Account

All Pages