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.
Chapter13: Sustainability Reporting
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Question
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdfa413b4-6cdf-4543-89d5-026509bb83c7%2F8b0ecfa1-3ffb-44d7-9999-89078ec83a1a%2F9iyu6sb_processed.jpeg&w=3840&q=75)
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:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdfa413b4-6cdf-4543-89d5-026509bb83c7%2F8b0ecfa1-3ffb-44d7-9999-89078ec83a1a%2Fahthaca_processed.jpeg&w=3840&q=75)
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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