Federal Reserve Bank

Running Head : FEDERAL RESERVE BANKNameCourseUniversityTutorDateThe Federal grant System or FED is the US central buzzword and it publishes a report eight times a stratum that summarizes the current economic conditions in each of the 12 marge districts . This report is used by the Federal Open marketplace Committee (FOMC ) in determining the monetary policies that will be adopted . Monetary policy tools ar changing the defend requirement , changing the discount rate as hale as Open Market Operations (FOMC , 2008Currently the US economic system has been declining or rather weakened and this is attestation that thither are economic strains in the financial markets However , it is worth mentioning that the imbalance is not only in US but to a fault in the world economy . Prices of vital goods cast been change magnitude for instance scathes of crude oil and this has had spillover effects on opposite goods or commodities . The housing effects have also been contracting at continuous rates . The real incomes of most Americans have been declining and this obviously affects the consumer spending Consumer price fanfare has also go along to rise especially due to the fact that the energy as well as food prices have been increasing (FOMC , 2008 . It is pass judgment that the overall economic performance will decline if the daub at hand persists . All in all , the inflation rates are expected to stabilize if the prices of different commodities snuff it st adapted and the pressure on the resources remains moderateThe housing manufacturing has been adversely affected by the current conditions . This has been attributed to the challenges affecting the mortgages where there have been increased cases of defaults that have a negative effect on the markets . Cost of housing has risen sharply as most people with mortgages cannot be able to pay for them . As the prices rise the demand for the housing has declined forcing the industry to reduce the verbalism of new houses and this makes the industry stagnant .

There has also been trim down consumer confidence which has led to trim down investment precipitating reduced economic growth . Without the consumer confidence investors shy away from invest as they are not ready to take the risks and this is not good for any economy (FOMC 2008Among the monetary policies undertaken recently by Fed in an effort to ensure that there was price stability and employment to the US citizens includes the condensed term championship markets . There were also the open market operations , valuation account of discount rates and procedures for discount window borrowing and securities loaning were the main monetary policies were used . Fed also constituted a Term Auction Facility that would provide short term credit to sound banks given a garland of collateral In an effort of increasing its availability of buck funds within the areas of its jurisdiction it entered into currency swap arrangements with other central banks . By slicing or rather simplification the impact brought about by financial market disruptions FOMC was able to reduce or rather slice down the arse for federal...If you want to get a full essay, order it on our website: Ordercustompaper.com

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