We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

The Federal Reserve - Essay Example

Comments (0) Cite this document
Summary
Federal Reserve Bank Name Instructor Date The Role of Fed in the Current Economy The financial crisis the country is trying to come out from was a creation of the Federal Reserve. However, the politician has been attacking each other and blaming the Bush administration for poor policy…
Download full paperFile format: .doc, available for editing
Polish This Essay99% of users find it useful
The Federal Reserve
Read TextPreview

Extract of sample
"The Federal Reserve"

Download file to see previous pages Therefore, in pursuing these functions Fed aim to stabilize prices and attain maximum employment. The Federal Reserve tightened it policy after the country suffered from a 2008-2010 financial crisis. Moreover, the bank increased regulations in the financial sector to check on bank lending behavior that caused the housing bubble to burst. These measures have achieved tremendously as indicated in the recent Beige Book. The economy at a national level is growing, and this shows that the country is on the path out of the financial crisis. The Board says that consumer confidence has increased, and business buoyancy is rising too. The Beige Book (2013) reported that the national economic conditions have expanded during the month of September to October. All the twelve Federal Districts had similar rates of growth, though some like Richmond, Philadelphia, Kansas and Chicago showed slowed growth rate as compared to earlier reports. Moreover, the Districts were optimistic of growth in future economics behaviors, but they also feared uncertainty as a result of increased debate on the debt ceiling and government shutdown. The country has increased consumer spending and people are travelling more in all most all the districts. Furthermore, tourism has also increased, and businesses are now growing. This can be attributed to increased payrolls in many Districts. The Fed reports that there is increased demand for manufacturing activities and nonfinancial services. Residential construction has resumed, and it is increasing pace by pace. The lending rate has remained modest, and there was little change in the financial balances. The agricultural sector has been affected, and most districts reported that drought impacted the sector. The energy sector has expanded, but there has been reduced production of coal. Therefore, the overall price condition and wage was stable and without pressure (Board of Governors of the Federal Reserve System, 2013). Economic Indicators That Guide In Stabilizing the Economy Economic indicators are voluminous statistics of the economic conditions that are used by the government in measuring and evaluating the growth of the economy. There are many economic indicators and each function differently from the other. Some indicators have short term effects on the economy while others have short term and long term effects. These indicators include real gross domestic product, money supply, consumer price index, consumer confidence, employment rate and housing starts. Real GDP help the Federal Reserve to know how it will utilize monetary policies to the changes in the economic conditions. Its shows the market cost of a countries goods market produced at the current period. Real GDP shows the country’s wealth by demonstrating the returns on capital and the growth of profit in businesses and service industries. Real GDP, therefore, measures the well being of a country economic activity. Consequently, Fed must use tight monetary policies to ensure that the interest rate is not below the set target of 2%. Low interest rates render the Federal Reserve policies ineffective in controlling the money supply (Labonte, 2013). Employment is the other economic indicator the Federal Reserve ought to address to maintain the path of economic growth. The employments statistics are derived from the payrolls, retail trade, construction and manufacturing and are used in determining the level of unemployment and the well being of the country. Increase in wages enhances ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The Federal Reserve Essay Example | Topics and Well Written Essays - 2000 words - 3”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1494979-the-federal-reserve
(The Federal Reserve Essay Example | Topics and Well Written Essays - 2000 Words - 3)
https://studentshare.org/macro-microeconomics/1494979-the-federal-reserve.
“The Federal Reserve Essay Example | Topics and Well Written Essays - 2000 Words - 3”, n.d. https://studentshare.org/macro-microeconomics/1494979-the-federal-reserve.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
The Federal Reserve
Indeed, its confusing structure, organization, and responsibilities make it difficult for American's to understand. In explaining the Federal Reserve, the New York Times describes it as having, “exercised more influence over economic growth and the level of employment than other government entity.”
4 Pages(1000 words)Essay
The federal reserve system
In simple terms, the Federal Reserve came into being by enactment of the Congress. Consequently, the Congress has the obligation of overseeing the monetary policy and the Federal Reserve. This paper analyzes the importance of the Federal Reserve and strategy in stabilizing the economy of the country.
3 Pages(750 words)Essay
The Federal Reserve
It strives to be as realistic as possible by considering events that took place since the latest economic recession in 2008. Many unfavourable events affected the Fed since then. Recommendations for improvements in the roles of the Fed were included. There were significant initiatives by the Board of Governors since mid-2012.
8 Pages(2000 words)Essay
The Federal Reserve
Over the years, the system and structure if the federal reserve has evolved to meet the effects of economic crisis and great depression in the economy. The Federal Reserve System was created under the Federal Reserve Act in order to address the issue of panic in the banking industry and acts as the final check point and regulator in the clearing system and the banking industry.
8 Pages(2000 words)Essay
The Federal Reserve Bank
They jointly implement the monetary policy which is set by the Federal System. Every Federal Reserve banks governs the regulation of commercial banks in their district. Alexander Hamilton, the first secretary of treasury of United States, proposed the idea of instituting a National Bank in order to develop the country in terms of all the financial aspects.
5 Pages(1250 words)Essay
Federal Reserve
Similarly, an increase in the money supply increases the cost of loans and people spend less. This reduces the money supply in the economy. Similarly, when interest rates decrease the exact opposite happens and money supply in the economy increases. 1b) Open-Market Operations: In this method, the sale and purchase by central bank in the security market has desired effect on the money supply in the economy.
3 Pages(750 words)Essay
The Federal Reserve System
Monetary policy is the actions taken by the central bank to influence the availability and cost of money and credit to assist in promoting national economic goals. The Fed's monetary policy decisions affect the flow of money and credit in the economy. The Federal Reserve System includes the Federal Open Market Committee, the Board of Governors, and the Federal Reserve Bank Presidents.
3 Pages(750 words)Essay
The Federal Reserve
The key objectives of the monetary policy are stipulated in the Federal Reserve Act. This act asserts that the Federal open Market Committee and the Board of Governors should always strive to promote the goal of stable
7 Pages(1750 words)Essay
The federal reserve
Federal Reserve controls money supply in the economy through supply of Federal Reserve Balances directly and through controlling the Federal Fund Rate indirectly to
4 Pages(1000 words)Essay
Federal reserve
It will also evaluate the policies that Federal Reserve used to fix the recession to explain why it was effective in the same. The research arguments will be derived from published articles, credible websites and datasets all for
6 Pages(1500 words)Admission/Application Essay
Let us find you another Essay on topic The Federal Reserve for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us