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¶ … Federal Open Market Committee discussed several important issues during their meeting of September 17th and 18th of this year. Naturally, the issue of the economy and specific items related to the national financial situation were of primary importance for all present.
One of the topics was the current economic situation and the federal debt, as well as any new developments which have been made toward the bettering of national circumstances. In the last few months, the committee has begun work to establish a "fixed-rate, full-allotment overnight reverse repurchase agreement (RRP) facility" (Minutes 2). Many benefits were attributed to the construction of such a facility including the ability to manage interest rates and support the idea of a floor to determine rates. During the September meeting, the research into this facility was further explored and it was ultimately determined that additional research must be done before going ahead with the project. It can now be reported that the average unemployment rate in American has dropped to 7.3%, a huge improvement given the situation just a few years ago where nearly 10% of people were out of work. Other positive indications that the economy was heading in the right direction included an increase in manufacturing and production, home prices also increased, and businesses increased expenditures which indicates levels of expansion for these enterprises. Some factors with potentially negative connotations were also discussed, including decreased government spending (3). Inflation rates also increased in the United States, most notably in American food costs. Although financial stability is increasing, there are still real risks to consider which could undermine the progress.
Projections were made about…
Works Cited
"Minutes of the Federal Open Market Committee." FRB: Meeting Calendars, Statements, and Minutes (2008-2014). Federal Open Market Committee, 3 Oct. 2013. Web. 20 Oct. 2013.
During most of the last 20 years (from August 1987 to January 2006), the Fed was headed by Alan Greenspan whose personal economic philosophy to a large extent guided the Fed's actions. One of the features of the Federal Reserve's "accommodative" policies was encouraging low interest rates, which was partly responsible for the longest period of economic expansion in U.S. history in the 1990s. Assessment of the Efficacy of the
In other words, these companies expand their business, reach a peak in their business activity, and then go through a period of recession, followed by a period of business expansion, and so on. It is important that companies understand that the economic sector they represent follows the same business cycle. Therefore, it is difficult for companies to expand their business during periods of recession in the economic sector they represent.
Pharmaceutical industries have to operate in an environment that is highly competitive and subject to a wide variety of internal and external constraints. In recent times, there has been an increasing trend to reduce the cost of operation while competing with other companies that manufacture products that treat similar afflictions and ailments. The complexities in drug research and development and regulations have created an industry that is subject to intense
For example, the value of some gas to someone that is just trying to mow their lawn is a lot less than with someone who is trying to escape a coming hurricane. However, a dollar-based system is better in that the value of money is much more stable and definable than with non-cash items because the value of those non-cash items (or any other "currency") is subject to a lot
Through these functions the federal system the Federal Reserve System manages the money supply in the U.S. leading to maximum employment, and stabilizing of prices hence preventing deflation or inflation. It stabilizes the financial system and contains any systemic risks that can come up in financial markets. Impact of interest rates on the U.S. And the global financial environment A change in interest rates impacts the U.S. And Global financial environment
To wit: In 1990, short-term interest rates were driven from 9% down to 3%, and in 2001, the rates were driven from 6.5% to 1%. The 2008-2009 recession saw rates drop from 5.25% to zero. But this "zero lower bound" just caused investors to hoard cash and not lend -- the recession deepen and monetary policy could not gain traction. When the private sector won't spend and monetary policy