Preview

FED Analysis: St. Louis Federal Reserve Bank

Satisfactory Essays
Open Document
Open Document
313 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
FED Analysis: St. Louis Federal Reserve Bank
David Griffin
Professor Kotomin
Home Work 5
FIL 241
10-26-14
FED Analysis James Bullard is the acting CEO and President of the St. Louis Federal Reserve Bank and in his message to The Regional Economist he leaves his readers with an unnerving thought. President Bullard pointed to how the relatively abnormal monetary policy that the Federal Reserve has taken to revive the economy after the 2008 and 2009 crisis may lead to larger future economic issues. The figure he presents in his message shows the distances from the FEDS goals and normal policy for the last 40 years; the figure shows how the FED is close to reaching its macroeconomic goals while deviating 18 times more from normal policy than it was in 2007.
So currently, the FED says
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Federal Reserve Worksheet
    • 413 Words
    • 2 Pages

    Federal Reserve Worksheet

    The Chairman of the Fed is the head of the central banking system of the United States and one of the most important decision-makers in American economic policies. Use the links provided to answer the questions below about the Chairman of the Fed:…

    • 413 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    ECO 372 Week 4 Federal Reserve Presentation
    • 320 Words
    • 4 Pages

    ECO 372 Week 4 Federal Reserve Presentation

    WHAT ARE THE FACTORS THAT WOULD INFLUENCE THE FEDERAL RESERVE IN ADJUSTING THE DISCOUNT RATE?  Weak Economy.  Low Employment Levels.  High Prices Fluctuation.  Low Economy Production Capacity.…

    • 320 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Pt1420 Unit 1 Assignment
    • 4255 Words
    • 18 Pages

    Pt1420 Unit 1 Assignment

    When the Federal Reserve sets monetary policy for the US economy, it is also defining monetary conditions for many parts of the emerging world too. These countries mostly don't have the West's debt difficulties. Offer them low interest rates and their economies boom. Demand for commodities surges. Commodity prices soar. For the Western world, food and energy inflation goes up. With weak labour markets, higher prices rise are not matched by higher wages. That means we're all facing real wage cuts. And wage cuts imply lower growth. Lots of people happily talk about a Plan B, as if it's possible to simply wave a magic wand to get us all out of this mess. But until they come up with a solution to the ongoing Japan-style difficulties associated with high debt and low incomes, their magic wands will remain as limp as their ideas. Dreams are all well and good, but every so often it's useful to take a dose of reality. Answer ALL of the following questions. 1 Why is inflation an economic problem? 2 How does an increase in interest rates work to contain/reduce inflation? 3 Why is encouraging growth important? 4 Explain fully the phrase underlined in the passage above. 5 Explain the sentence “Housing markets, meanwhile, are no longer able to deliver the turbo-charged recoveries of old”. 6 Explain the sentence in bold font in the passage above. 10 EXAMPLE OF AN…

    • 4255 Words
    • 18 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    GM 545 You Decide
    • 379 Words
    • 2 Pages

    GM 545 You Decide

    The economy has been in a rough shape for a number of years. Many people have lost their jobs, their homes, their savings, and their confidence. Although the recession lasted for a while, the nation is going through a recovery mode. As the new senior economic advisor to the President of the United States, I need to recommend a plan of action to help curve inflation, unemployment, and economic instability. First, I have to take a look at what my colleagues recommend and take into account our monetary and fiscal policies.…

    • 379 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    mkt 501
    • 424 Words
    • 2 Pages

    mkt 501

    This week’s topics include credit markets’ effect on the economy, as well as global economic conditions regarding trade and specialization business decisions. Concepts discussed include credit markets and the role of the Federal Reserve in creating money and controlling the money supply, as well as how economies interact with one another. The readings for the week address the role of the Federal Reserve and foreign exchange. These concepts emphasize the role of central banks in global financial crises and the tools they must utilize.…

    • 424 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Federal Reserve Paper
    • 394 Words
    • 2 Pages

    Federal Reserve Paper

    On October 23 and 24 the Federal Reserve Open Market Committee held a meeting to discuss what they need to do or continue to do to stimulate the economy. According to the statement consumer spending has increased, but investment in companies has continued to decrease. They also said that inflation has increased which causes energy costs to go up, but the expectations are looking good. The Fed decided that continuing to buy securities would be a good idea since they are trying to lower the long-term interest rates. Their plan is to continue purchasing these mortgage backed securities until the labor markets improve. They will also plan on purchasing more assets if that is the case. The Committee wants to continue extending the holding of Treasury securities, and it is keeping the policy of reinvesting principal payments from the holding of agency debt and agency mortgage-backed securities. Their goal by doing this is to keep the Federal funds rate between 0 and .25%. All of this will increase securities held in the long run. They influence the interest rates by buying securities through open market operations. The Committee decided that the economy is getting better but too slowly so that is why they decided to take these actions to try and increase the speed. According to The New York Times article , they want to max out employment and price stability, which will help stimulate the economy. After reading the Committee’s statement I have concluded that they are using expansionary policies or “easy money policies”. I figured they are doing this since they are buying and holding their securities in an attempt to raise the aggregate demand. I do agree with what the Fed is planning to do in an attempt to stimulate the economy. I this it is a good idea since our economy is still in somewhat of a slump to use the easy money policies to increase the aggregate demand by changing the interest rates. Overall I agree with…

    • 394 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Feral Reserve System
    • 824 Words
    • 4 Pages

    Feral Reserve System

    The Feral reserve system faces many challenges in order to provide a healthy economic structure. One of those challenges is for example determining the best solution to solve a crisis that could have different degrees of seriousness. In other words, the FED struggles on how to set the targets that would best affect positively on policy goals. To illustrate this point, we can address the following issue: inflation. As inflation rises, every dollar will buy a smaller percentage of a good. For example, if the inflation rate is 2%, then a $1 pack of gum will cost $1.02 in a year. I was taught in my previous finance class that most countries' central banks would try to sustain an inflation rate of 2-3%.…

    • 824 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Analysis of Federal Reserve
    • 737 Words
    • 3 Pages

    Analysis of Federal Reserve

    Strong bank supervision to prevent or reduce the risk bank failures (Kidwell, Blackwell, & Whidbee, p. 62, 2008).…

    • 737 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    How The Federal Reserve System Works In The United States
    • 1165 Words
    • 4 Pages

    How The Federal Reserve System Works In The United States

    Every Capitalist nation has a monetary system basically similar to ours. As a consequence, all have developed central banks whose duties are essentially like those of the Federal Reserve, namely, to exert control over the direction and extent of changes in the money supply.…

    • 1165 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Federal Reserve System
    • 1519 Words
    • 7 Pages

    Federal Reserve System

    Ben Bernanke was a key player in U.S. economic policy well before the Great Recession, and during that time seems to have achieved almost mythical status. The prolonged economic crisis has kept him front and center in the news, with regular appearances on Capitol Hill and increasingly heated rhetoric from detractors. As Federal Reserve chairman, Bernanke maintains as he attempts to steer the nation onto a steadier economic course. Federal Reserve Chairman Ben Bernanke is, by all accounts, a man of formidable intelligence. He scored 1590 on his SATs, taught himself calculus in high school, and graduated summa cum laude from Harvard University. He then went on to earn his Ph.D. in economics from the Massachusetts Institute of Technology, with a dissertation on the Great Depression—knowledge that has almost certainly informed his policy moves during the current economic downturn. Ben Bernanke’s bond buying program that has been in place for the last couple of years is starting to be wound back up. US sharemarkets have surged to new record highs on the back of that news, with further gains of around 1.5% just recently, which means that US stocks are up almost 7% in the last two weeks. At the same time, the US dollar has weakened and the yield on government bonds has fallen back, although they remain substantially higher than the yield of a few months ago as the better economic news has underscored a generally sluggish sentiment. It is strikingly clear that Bernanke is not going to make the same mistakes that knee-capped each mini-recovery that emerged during the 1930s Great Depression, when policy-makers prematurely tightened policy on several occasions when there were tentative signs that the economy was improving.…

    • 1519 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Better Essays

    Federal Reserve
    • 1488 Words
    • 6 Pages

    Federal Reserve

    The economical flush down the toilet had the whole nation pointing fingers at each other to whose fault it was, which sooner or later ended up pointing to the Federal Reserve Bank system. The way quantitative easing (QE) was handled by the Federal Reserve planted a seed of doubt in the welfare of the economy, with the almost to be second Great Depression. Convincing articles such as Financial Innovation and the Fed, The Case for Auditing the Federal Reserve Bank Is Obvious, and Fed Under Fire have been written towards this the topic of quantitative easing by influential authors in respect to how the bank decisions should be treated by the majority of the population.…

    • 1488 Words
    • 6 Pages
    Better Essays
    Read More
  • Good Essays

    Challenge of Affluence
    • 797 Words
    • 4 Pages

    Challenge of Affluence

    This article, by Alice Rivlin, begins by delineating the questions around the sudden growth in the economy due to technological change. She describes that it was unexpected, yet one of the causal factors was based on the idea that computers and information technology could be a solution to unskilled laborers in the midst of a tight labor market. Furthermore, Revlin goes into detail about the role of fiscal policy employed by Clinton and Bush, and the monetary policy (or lack thereof) on the Fed’s part. Revlin states that “The Fed's more significant contribution, however, was doing nothing, or almost nothing, in 1996 and 1997” but that had the predictions and models been right about growing inflation rates and a tighter labor market, the Fed would have been seen as reckless.…

    • 797 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    FIN364 Course Project Summary 1

    • 642 Words
    • 2 Pages

    FIN364 Course Project Summary 1

    2. What interventions were taken by the Federal Reserve during the most recent recession and how did these actions compare to strategies implemented in the past? Were their actions successful?…

    • 642 Words
    • 2 Pages
    Good Essays
    Read More
  • Better Essays

    The Federal Reserve and Its Monetary Policy
    • 2174 Words
    • 9 Pages

    The Federal Reserve and Its Monetary Policy

    The United States Federal Reserve Bank was found in 1913. The Federal Reverse Bank was created after congress passed the Federal Reserve act. This was because of financial panics that kept happening manly the financial panic of 1907. The United State attempted to set up this bank before but it was always shut down after 20 years. The Federal Reserve Act is also known as the Glass-Owen Bill. The Republican controlled Senate pushed the bill through when many members of the US Congress were home for the holiday. The President Woodrow Wilson signed it into law one hour after being passed by the congress (Krautkramer).…

    • 2174 Words
    • 9 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Economic Analysis the Federal Reserve
    • 412 Words
    • 2 Pages

    Economic Analysis the Federal Reserve

    The Federal Reserve is the central banking system of the United States. It was created in December 1913. The Reserve is government licensed and privately owned; also it is not accountable to anyone. It was created by Congress and signed in by President Woodrow Wilson. The U. S. Congress established three key objectives: Maximum employment, stable prices, and moderate long-term interest rates. Today its duties have expanded well beyond those things (Bullamore).…

    • 412 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics