Question

In: Finance

Briefly describe the fed's current monetary policy and what step they took at the most recent...

Briefly describe the fed's current monetary policy and what step they took at the most recent federal open market committee meeting

Solutions

Expert Solution

Federal Reserve Board governs the monetary policy for the United States of America.

Any Fed Reserve in the world has these three actions that needs to be adhered

1. Creation / generation of Employment

2. Stables Prices

3.and to maintain the interest rates at certain moderate level.

Federal Reserve manages the same by maintaining the short term interest rates, availability of goods and the cost of credit that is borrowing of the entire economy. Monetary policy directly affects the short term interest rates of any economy and indirectly affects the long term interest rates, currency exchange rates, price of the securities or equities and as well as the assets/wealth of the entire economy.

The decisions taken in the Meeting are as follows:

1. Interest rate are same and not changed.

2. Fed has authorized & Direct the open market  desk at Federal Reserve Bank.

3. Credit rate unchanged.

The source of the above data is from Fed Reserve Notification obtained from its Website.


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