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For the March 2020 (2)  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.

For the March 2020 (2)  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.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter13: Emerging Topics In Managerial Accounting
Section: Chapter Questions
Problem 49E: Refer to Exercise 13-48. Suppose that Kamber is considering building a new plant inside a foreign...
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For the March 2020 (2)  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.

FEDERAL RESERVE press release For release at 5 p.m. EDT March 15, 2020 The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States. Global financial conditions have also been significantly affected. Available economic data show that the U.S. economy came into this challenging period on a strong footing. Information received since the Federal Open Market Committee met in January indicates that the labor market remained strong through February and economic activity rose at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending rose at a moderate pace, business fixed investment and exports remained weak. More recently, the energy sector has come under stress. 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 have declined; 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 effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals. This action will help support 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 information related to public health, as well as global developments and muted inflation pressures, and will use its tools and act as appropriate to support the economy. In determining the timing and size of future adjustments to the stance of monetary policy, 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. The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals. To support the smooth functioning of markets for Treasury securities and agency mortgage-backed securities that are central to the flow of credit to households and businesses, over coming months the Committee will increase its holdings of Treasury securities by at least $500 billion and its holdings of agency mortgage-backed securities by at least $200 billion. The Committee will also reinvest all principal payments from the Federal Reserve's holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. In addition, the Open Market Desk has recently expanded its overnight and term repurchase agreement operations. The Committee will continue to closely monitor market conditions and is prepared to adjust its plans as appropriate.
Transcribed Image Text:FEDERAL RESERVE press release For release at 5 p.m. EDT March 15, 2020 The coronavirus outbreak has harmed communities and disrupted economic activity in many countries, including the United States. Global financial conditions have also been significantly affected. Available economic data show that the U.S. economy came into this challenging period on a strong footing. Information received since the Federal Open Market Committee met in January indicates that the labor market remained strong through February and economic activity rose at a moderate rate. Job gains have been solid, on average, in recent months, and the unemployment rate has remained low. Although household spending rose at a moderate pace, business fixed investment and exports remained weak. More recently, the energy sector has come under stress. 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 have declined; 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 effects of the coronavirus will weigh on economic activity in the near term and pose risks to the economic outlook. In light of these developments, the Committee decided to lower the target range for the federal funds rate to 0 to 1/4 percent. The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals. This action will help support 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 information related to public health, as well as global developments and muted inflation pressures, and will use its tools and act as appropriate to support the economy. In determining the timing and size of future adjustments to the stance of monetary policy, 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. The Federal Reserve is prepared to use its full range of tools to support the flow of credit to households and businesses and thereby promote its maximum employment and price stability goals. To support the smooth functioning of markets for Treasury securities and agency mortgage-backed securities that are central to the flow of credit to households and businesses, over coming months the Committee will increase its holdings of Treasury securities by at least $500 billion and its holdings of agency mortgage-backed securities by at least $200 billion. The Committee will also reinvest all principal payments from the Federal Reserve's holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. In addition, the Open Market Desk has recently expanded its overnight and term repurchase agreement operations. The Committee will continue to closely monitor market conditions and is prepared to adjust its plans as appropriate.
OMC Press Release Scoresheet Releases Indicators Monetary Policy (Month/Year) Open Market Operations Economic Job Gains Unemployment Household Business Inflation Federal Funds Activity Spending Investment Target (short run) Rate Target Low / High 1 2 3 4 5 Buying/ Selling December 2019 1 2 3 4 5 |1 2 3 4 5 1 2 3 4 5 <2% 2% 1.5% to 1.75% >2% % change: N/A January, 2020 1 2 3 4 5 |1 2 3 4 5 Low / High 1 2 3 4 5 <2% 2% >2% 1 2 3 4 5 to % change: Buying / Selling March, 2020 (1) 1 2 3 4 5 1 2 3 4 5 Low / High 1 2 3 4 5 1 2 3 4 5 <2% 2% >2% to % change: Buying/ Selling March. 2020 (2) 1 2 3 4 5 1 2 3 4 5 Low / High 1 2 3 4 5 <2% 2% >2% Buying / Selling 1 2 3 4 5 to % change:
Transcribed Image Text:OMC Press Release Scoresheet Releases Indicators Monetary Policy (Month/Year) Open Market Operations Economic Job Gains Unemployment Household Business Inflation Federal Funds Activity Spending Investment Target (short run) Rate Target Low / High 1 2 3 4 5 Buying/ Selling December 2019 1 2 3 4 5 |1 2 3 4 5 1 2 3 4 5 <2% 2% 1.5% to 1.75% >2% % change: N/A January, 2020 1 2 3 4 5 |1 2 3 4 5 Low / High 1 2 3 4 5 <2% 2% >2% 1 2 3 4 5 to % change: Buying / Selling March, 2020 (1) 1 2 3 4 5 1 2 3 4 5 Low / High 1 2 3 4 5 1 2 3 4 5 <2% 2% >2% to % change: Buying/ Selling March. 2020 (2) 1 2 3 4 5 1 2 3 4 5 Low / High 1 2 3 4 5 <2% 2% >2% Buying / Selling 1 2 3 4 5 to % change:
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