Tag: the Federal Reserve

R&D from Prepd: The Federal Reserve & Monetary Policy

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l_2Today’s R&D is brought to you by Prepd, the only software built specifically for extemp. Prepd makes it easy to research, practice, and compete!  Visit www.prepd.in to learn more. Like Prepd on Facebook for special info and contests.

This R&D provides resources on the Federal Reserve and its future monetary policy making decisions.  Economists are divided over whether the Fed will raise interest rates in 2016, with some noting that a lower unemployment rate signals a growing economy and the need for a rate hike.  However, others note that the lack of wage growth in the economy and inflation means that the Fed should hold off on a rate hike.  There are also fears that a premature rate hike could create significant global economic problems. The Fed will hold a meeting on September 21 to consider another rate hike, which would be the second since December.

Raising Interest Rates (2015)

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When 2015 began policymakers figured that the U.S. Federal Reserve would raise interest rates.  Optimism about the strength of the U.S. economy, as well as projections that inflation would soon meet the Federal Reserve’s preferable mark of 2%, lent credence to these predictions.  However, lower than expected growth during the first quarter, coupled with disappointing unemployment data and stubborn inflation statistics have caused some observers to change their predictions of a rate increase.  Instead of expecting an increase in 2015, some are now saying that a change in monetary policy will not occur until next year.  The minutes of the Federal Reserve’s meeting last month show that it is divided about what to do and this uncertainty means that extempers could face questions over the next three months about when the Federal Reserve will act, and if it should raise interest rates before the end of the year.

This topic brief will give an overview for how monetary policy works, discuss why “hawks” within the Federal Reserve wish to raise interest rates, and then analyze why “doves” within the Federal Reserve wish to maintain interest rates at their near-zero level for the near future.

Readers are also encouraged to use the links below and in the related R&D to bolster their files about this topic.

R&D: Raising Interest Rates (2015)

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Here is today’s premium R&D to accompany today’s premium topic brief on raising interest rates (2015).

Janet Yellen & The Federal Reserve

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Last week, President Barack Obama formally nominated the vice-chairman of the Federal Reserve, Janet Yellen, to succeed Ben Bernanke as Federal Reserve chairman in January.  Yellen has been at the Federal Reserve for nearly twenty years and she became President Obama’s top choice for the job after his top candidate, Larry Summers, withdrew from consideration last month.  If Yellen is confirmed by the Senate, which seems like a formality, she would become the first woman to lead the Federal Reserve in its one hundred year history.  Holding this job would arguably make her the most powerful woman in the world and she will face several challenges, including how to handle the Fed’s quantitative easing (QE) program, how to lower unemployment while keeping inflation low, and convince central bankers in other countries that the Fed’s policies are in their best interest.

This brief will discuss Yellen’s background, the politics of her nomination, and how she might shift the operations of the Federal Reserve after taking the reins.

Readers are also encouraged to use the links below and in the related R&D to bolster their files about this topic.

R&D: Janet Yellen & The Federal Reserve

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Here is today’s premium R&D to accompany today’s premium topic brief on Janet Yellen and the Federal Reserve.

 

R&D: The Race for Federal Reserve Chairman

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Today’s R&D provides extempers a few articles about the “race” for the next Federal Reserve chairman between Larry Summers and Janet Yellen.

 

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