Transcript Monetary-PolicyTCEE-1x - Texas Council on Economic Education

Susan Kizer
Economic Education Coordinator
The opinions expressed are solely those of the presenters and do not
reflect the opinions of the Federal Reserve System .
The actions of a central bank
that influence the availability
and cost of money and
credit to achieve national
economic goals.
Monetary Policy
Fiscal Policy
• Conducted by the Fed
• Availability and cost of
money and credit
• Congress and President
• Tax policy and
spending decisions
Board
of Governors
Regional Banks
Federal Open
Market Committee
Stanley
Fisher
Janet Yellen
Chairwoman
Jerome H.
Powell
Daniel K.
Tarullo
Lael
Brainard
 Eight
regularly scheduled meetings
 Two types of information:


Statistical information (economic indicators)
Anecdotal information (Beige Book)
Is the country’s economy currently meeting the
goals set by Congress for the Federal Reserve?
Maximum employment
Stable Prices
Moderate long-term interest rates
 Anecdotal
information from every Federal
Reserve District
 Gathered through



Reports from Board of Directors
Interviews with key business contacts,
economists and market experts
Other sources
 Released
immediately following every
meeting (2:15 p.m. Eastern)
 Contains the committee’s



Target for the federal funds rate
Summary of economic conditions
Assessment of the balance of risks between price
stability and sustainable economic growth
Open Market
Operations
Discount Rate
Reserve
Requirements
Interest on
Reserve
Balances
Availability and cost of money and credit
Consumer and business spending
Employment and prices
 Today
the Federal Open Market Committee
reaffirmed the current 0 to ¼ percent target
range for the federal funds rate.
 Since
the Committee last met in April, the
pace of job gains has picked up and labor
market conditions have improved somewhat
further.

Inflation has continued to run below our
longer-run objective, but some of the
downward pressure on inflation resulting
from earlier sharp declines in energy prices is
abating.