Question

the official Wed site of the Federal Open Market Committee (FOMC) of the Federal Reserve Board. Scroll down the page and choose the link to one of the most recent statements from FOMC meetings.

In your initial response to the topic you have to answer all questions:

1. Define the Federal Funds Rate. What is the current Federal Funds Rate?
2. Define the Federal Reserve Discount Rate. What is the current Federal Reserve Discount Rate?
3. What are the factors cited in this statement that determined the FOMC’s decision of changing (or keeping constant) its target for the federal funds rate?
4. Does the Fed have control over the federal funds rate and over bank reserves? If so, can the Fed control both simultaneously?
5. Reflection – the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace.

Answer 1