Question

What is the Fed’s current monetary policy? What is it expected to be in the near...

What is the Fed’s current monetary policy? What is it expected to be in the near future?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1. Federal Reserve has currently adopted QUANTITATIVE EASING form of monetary policy in which it has cut the interest rates to almost zero zones and it has also relaxed the Reserve requirement for commercial banks and it has also engaged itself into to buying of the securities from the market in order to infuse the Liquidity into the system so it has been supportive policy & it is inclined towards stimulation of demand. It is also known as DOVISH or EXPANSIONARY policy.

2. Federal Reserve expected monetary policy is that Federal Reserve will be stabilizing the monetary policy and it will be trying to keep the rate of interest to lower levels, till the economy is astable and demand is back.

If we're talking about a nearby future of 3 years,then federal reserve was already told that it will be keeping the rates lower in order to stimulate the economy.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Briefly describe the FED’s current Monetary Policy. What is the “exit strategy” and why is it...
Briefly describe the FED’s current Monetary Policy. What is the “exit strategy” and why is it important? Be brief and concise.
Are there conflicts arising between the Fed’s responsibility for normal monetary policy operations and the need...
Are there conflicts arising between the Fed’s responsibility for normal monetary policy operations and the need to operate a government safety net to deal with severe systemic crises?
Current monetary policy Go to the Web site for the Federal Reserve Board of Governors (www.federalreserve.gov)...
Current monetary policy Go to the Web site for the Federal Reserve Board of Governors (www.federalreserve.gov) and download the most recent monetary policy press release of the Federal Open Market Committee (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? (2018)(Note that policy will be described in terms of increasing or decreasing the federal funds rate as opposed to increasing...
Is our current monetary policy a loose or tight monetary policy? What tools is the Federal...
Is our current monetary policy a loose or tight monetary policy? What tools is the Federal Reserve using? Why has the Federal Reserve chosen this policy direction?
Is our current monetary policy a loose or tight monetary policy? What tools is the Federal...
Is our current monetary policy a loose or tight monetary policy? What tools is the Federal Reserve using (like this week current)? Why has the Federal Reserve chosen this policy direction? Write two double-spaced typed pages.
Suppose the central bank implements a monetary expansion in the current period and is not expected...
Suppose the central bank implements a monetary expansion in the current period and is not expected to continue this policy in the future. Explain what effect this policy will have on the shape of the yield curve and on stock prices. (about 50-100 words)
Suppose the central bank implements a monetary expansion in the current period and is not expected...
Suppose the central bank implements a monetary expansion in the current period and is not expected to continue this policy in the future. Explain what effect this policy will have on the shape of the yield curve and on stock prices. (about 50-100 words)
Fed’s Kaplan says the monetary policy has reached limits for bolstering growth Robert Kaplan ALBUQUERQUE --...
Fed’s Kaplan says the monetary policy has reached limits for bolstering growth Robert Kaplan ALBUQUERQUE -- Federal Reserve Bank of Dallas President Robert Kaplan called for “structural reforms and other fiscal policy” to help jump-start the U.S. economy, which he said would give the central bank more “operating room” to raise interest rates. In a question-and-answer session at a community banking conference in Albuquerque, N.M., Kaplan said the nation’s second-quarter growth in gross domestic product was disappointing, though not surprising,...
Assume all policy rates, current and expected into the future had been 2%. Suppose the Fed...
Assume all policy rates, current and expected into the future had been 2%. Suppose the Fed decides to tighten monetary policy and increase the short-term policy rate (r11) from 2% to 3% .a)What happens to stock prices if the change in r11? b)What happens to stock prices if the change in r11is expected o be permanent, that is, is expected to persist?
Assume that the current demand for goods does depend on expectations. A monetary expansion in the...
Assume that the current demand for goods does depend on expectations. A monetary expansion in the current period will cause a rightward shift in the IS curve if: 1 Current and expected future real interest rates are positively related 2 Current and expected future real interest rates are negatively related 3 Current and expected future real interest rates are unrelated 4 Monetary policy cannot affect, directly or indirectly, the position of the IS curve in the current period
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT