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Current monetary policy
Go to the Web site for the Federal Reserve Board of Gover- nors (www.federalreserve.gov) and download the most recent monetary policy press release of the Federal Open Market Com- mittee (FOMC). Make sure you get the most recent FOMC press release and not simply the most recent Fed press release.
a. What is the current stance of monetary policy? (Note that policy will be described in terms of increasing or decreasing the federal funds rate as opposed to increasing or decreasing the money supply.)
b. If the federal funds rate has changed recently, what does the change imply about the bond holdings of the Federal Reserve? Has the Fed been increasing or decreasing its bond holdings?
Finally you can visit the Fed's website and find various state- ments explaining the Fed's current policy on interest rates.
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