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For the January 2020 Press Release, answer the following question. A.  For Column 8, complete the range of the Federal Funds Target AND the % change from the previous release. B. For Column 9, decide whether the Fed is buying or selling loans and whether they have increased or decreased

For the January 2020 Press Release, answer the following question. A.  For Column 8, complete the range of the Federal Funds Target AND the % change from the previous release. B. For Column 9, decide whether the Fed is buying or selling loans and whether they have increased or decreased

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 18RQ: What is deflation?
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For the January 2020 Press Release, answer the following question.
A.  For Column 8, complete the range of the Federal Funds Target AND the % change from the previous release.
B. For Column 9, decide whether the Fed is buying or selling loans and whether they have increased or decreased
the amount.

EVERNO DOF G FEDERAL RESERVE press release For release at 2 p.m. EST January 29, 2020 Information received since the Federal Open Market Committee met in December indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending has been rising at a moderate pace, business fixed investment and exports remain weak. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation remain low; survey based measures of longer-term inflation expectations are little changed. Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee decided to maintain the target range for the federal funds rate at 1-1/2 to 1-3/4 percent. The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective. The Committee will continue to monitor the implications of incoming information for the economic outlook, including global developments and muted inflation pressures, as it assesses the appropriate path of the target range for the federal funds rate. In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.
Transcribed Image Text:EVERNO DOF G FEDERAL RESERVE press release For release at 2 p.m. EST January 29, 2020 Information received since the Federal Open Market Committee met in December indicates that the labor market remains strong and that economic activity has been rising at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending has been rising at a moderate pace, business fixed investment and exports remain weak. On a 12-month basis, overall inflation and inflation for items other than food and energy are running below 2 percent. Market-based measures of inflation compensation remain low; survey based measures of longer-term inflation expectations are little changed. Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee decided to maintain the target range for the federal funds rate at 1-1/2 to 1-3/4 percent. The Committee judges that the current stance of monetary policy is appropriate to support sustained expansion of economic activity, strong labor market conditions, and inflation returning to the Committee's symmetric 2 percent objective. The Committee will continue to monitor the implications of incoming information for the economic outlook, including global developments and muted inflation pressures, as it assesses the appropriate path of the target range for the federal funds rate. In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments.
OMC Press Release Scoresheet Releases Indicators Monetary Policy (Month/Year) Federal Funds Rate Target Open Market Operations Economic Job Gains Unemployment Household Business Inflation Activity Spending Investment Target (short run) December 2019 1 2 3 4 5 |1 2 3 4 5 Low / High 1 2 3 45 |1 2 3 4 5 <2% 2% Buying/ Selling 1.5% to 1.75% >2% % change: N/A January, 2020 1 2 3 4 5 |1 2 3 4 5 Low / High <2% 2% >2% to % change: Buying / Selling 1 2 3 4 5 1 2 3 4 5
Transcribed Image Text:OMC Press Release Scoresheet Releases Indicators Monetary Policy (Month/Year) Federal Funds Rate Target Open Market Operations Economic Job Gains Unemployment Household Business Inflation Activity Spending Investment Target (short run) December 2019 1 2 3 4 5 |1 2 3 4 5 Low / High 1 2 3 45 |1 2 3 4 5 <2% 2% Buying/ Selling 1.5% to 1.75% >2% % change: N/A January, 2020 1 2 3 4 5 |1 2 3 4 5 Low / High <2% 2% >2% to % change: Buying / Selling 1 2 3 4 5 1 2 3 4 5
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