Federal reserves use of open-market operations

Reference no: EM13734731

Press Release-FOMC statement-December 16, 2009.

You should now find a press release from the Board of Governors of the Federal Reserve System, dated December 16, 2009, which discusses the decisions of the Federal Open Market Committee (FOMC) for that date.

This release also states that the Federal Reserve is in the process of purchasing $1.25 trillion of agency mortgage-backed securities and about $175 billion of agency debt. Additionally, the release states that the FOMC has decided to gradually reduce "the pace" of such Fed purchases. Discuss why you believe that the FOMC has made such a decision, and explain the consequences of such a decision on the economy.

In your answer, discuss the Federal Reserve's use of open-market operations to influence the money supply and the respective consequences of such actions. Include a discussion of the money multiplier effect in your response. Justify your conclusions and provide appropriate examples.

Reference no: EM13734731

Questions Cloud

What cultural competencies should a global leader possess : What cultural competencies should a global leader possess

Describe one way that the roles of managers : Describe one way that the roles of managers and supervisors are impacted by the organization's design. Describe two changes you would make if you were to redesign the organization to make the organization more efficient.

Personal level of intercultural communication competence : In a 250-300 word response, critically examine your personal level of intercultural communication competence. Is it important for you to achieve a certain level of intercultural communication competence?

Privatize the money supply in the united states : Would it be possible to privatize the money supply in the United States completely? In doing so, what would be the primary obstacle to overcome in implementing such a policy?

Federal reserves use of open-market operations : Discuss the Federal Reserve's use of open-market operations to influence the money supply and the respective consequences of such actions. Include a discussion of the money multiplier effect in your response.

Does some wizard of oz person-behind-the-curtain : Does some Wizard of Oz person-behind-the-curtain get you to buy something by manipulating you through the 7 Ps? And is "manipulate" the right word for us to use

In which war major general nelson miles invaded puerto rico : Major General Nelson A. Miles invaded Puerto Rico. Before, during, or after the Spanish american war?

Explain what is the capacity utilization rate : A manufacturing shop is designed to operate most efficiently at an output of 550 units per day. In the past month the plant produced 490 units. What was its capacity utilization rate last month

Post the product you selected for your marketing plan : Post the product (or service) you selected for your Marketing Plan. Product or Service Selection for Marketing Plan

User Account

All Pages