Federal funds rate

many public opinions on whether or not this is a risk to the US economy and if this will lead to our next economic collapse. The National debt is the amount owed by the federal government to all of those who hold the notes. The outstanding Treasury securities at a point in time that have been issued by the Treasury and other federal government agencies is the measure of public debt. When we talk about national deficit and surplus we refer to the government budget balance from year to year, not a cumulative

The Federal Reserve is the central bank of the United States, its structure combines centralization with regional authority: including a Board of Governors in Washington D.C., a Federal Government Agency, and twelve regional Reserve Banks. One branch in particular, the Federal Open Market Committee, made of twelve Federal officials, is committed to fulfilling its ordinance from congress to promote maximum employment, maintain stable prices, and moderate long-term interest rates. According to the

The Federal Budget Deficit Introduction The federal budget deficit is a much discussed and little understood subject in American politics. The current recession has dramatically decreased tax revenues, driving the United States federal government to increase spending in an attempt to stabilize the economy. As a result the current federal deficit is at over $1.3 trillion dollars. This is approximately $47,754 per U.S. citizen or $137,552 per U. S. taxpayer (U.S. Debt Clock: Real Time, 2012).

course of action would be to decrease the federal funds rate. Since this is the most influential interest rate in the economy, decreasing the rate would lead to a stimulus. It creates influence in the fact that the rate could affect other short-term interest rates, longer-term interest rates, foreign exchange rates and stock prices. This tactic can only be initiated by the Federal Reserve and is known as a Lender of last resort. The federal funds rate is the rate at which the central bank lends its reserves

U.S. Federal Reserve's Monetary Policy The nation's monetary policy is set up by the Federal Reserve in order to support the aims and objectives of better employment, stable prices and a suitable and logical long term interest rates. One of the main challenges that are faced by policy makers is the stress among the aims and objectives that can occur in the short term and the fact that information regarding the economy becomes delayed and can be inaccurate (Monetary). The Federal Reserve Act lays

meeting despite the three FOMC participants’ votes for a rate increase. The meeting was full of debate, yet the hawkish FOMC participants did not manage to convince the Fed Chair to increase federal funds rates by 25 bps. Prizing consensus during the FOMC meetings, this time Janet Yellen made a decision to keep rates unchanged regardless of the dissent. Reasons leading to this decision were labor market slack, near zero short-term interest rates and recent signs of the expanding economy. The Chair stated

by David Colander. The state of the economy, concerns of the Federal Reserve, and the stated direction of recent monetary policy will also be discussed. "Monetary policy is a policy of influencing the economy through changes in the banking system's reserves that influence the money supply and credit availability in the economy" (Colander, 2004, p. 659). Monetary policy also refers to the actions undertaken by a central bank,

undue diversion of funds into speculative operations, and for other purposes.

paper will present information on four topics: (1) tools used by the Federal Reserve to control the money supply, (2) how these tools influence the money supply and in turn affect macroeconomic factors? (3) how money is created? (4) recommended monetary policy combinations that best achieve a balance between economic growth, low inflation, and a reasonable

Federal Reserve activities. The aim of this paper is to describe the most used Federal Reserve monetary tools and activities. To further entail other requirements, this paper is aimed to at least 2-page length, font size 12, double spaced, Bookman Old Style font, and lastly include a reference list. 1. Which of the monetary tools available to the Federal Reserve is most often used? Why? There are three available monetary tools: open-market operations, setting the discount rate and reserve requirements