Federal Reserve Open Market Operations
SUMMARY
The Federal Reserve's operating strategy for implementing monetary policy involves interest rate targeting through open market operations. The Federal Reserve does not utilize reserve requirements or the discount rate as part of this strategy. Open market operations involves the buying and selling of securities in the open market, in order to influence reserve balances. By manipulating reserve balances, the Federal Reserve can control the price of reserves in the market. The price of reserves is known as the Federal Funds rate. The Federal Funds rate is the interest rate banks charge each other for lending and/or borrowing reserve balances. This paper will discuss how the Federal Reserve implements a strategy of interest rate targeting through open market operations.
Part I Introduction
The Federal Reserve Bank is the central bank of the United States. In 1913, Congress created the Federal Reserve System to provide stability to the financial and monetary system. The Federal Reserve Bank (from here on, referred to as the "FED") has four main functions. They conduct monetary policy by influencing money supply in the economy, in order to maintain full employment, price stability, and promote economic growth. They regulate and supervise banking institutions to ensure the safety and soundness of the U.S. financial and banking system. The FED also provides financial and banking services to the U.S. Government, the public, and to financial institutions. And lastly, the FED maintains stability in the financial system by reducing systemic risks that may arise in the markets.
The Federal Reserve System is made up of the Board of Governors and twelve regional Federal Reserve banks. The Board of Governors consists of seven members who are appointed by the President of The United States, and must be confirmed by the Senate. All seven governors are members of the Federal Open Market Committee (FOMC), and each vote on the conduct of open market operations. The network of twelve regional banks performs various functions, including; operating a nationwide payments system, distribution of currency and coin, supervising and regulating member banks, and serving as banker for the United States Treasury.
The Federal Open Market Committee (FOMC) is a major part of the Federal Reserve...
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... Trends - The Funds Rate Target and Interest Rates - September 1999. http://www.stls.frb.org/docs/publications/mt/1999/cover9.pdf - 12-13-99
· The Dwindling Power of Rate Cuts.
http://www.nytimes.com/2001/10/03/opinion/03wed1.html
October 3, 2001.
· Another Rate Cut From the Fed.
http://www.nytimes.com/2001/12/12/opinion/12wed2.html
December 12, 2001.
· Hess, Diane. 2001. Fed Paints Real Rates a Deeper Shade of Red.
http://www.thestreet.com/markets/taleofthetape/10005186.html
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· Task, Aaron L., 2001. Cutting Spree May Dull Fed's Blade.
http://www.thestreet.com/markets/aarontaskfree/10003583.html
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Speeches:
· Meyer, Laurence H., 2001. Remarks by Governor Laurence H. Meyer. Before the National Association of Business Economics. The Federal Reserve Board. November 27, 2001.
· Greenspan, Alan. 2001. Testimony of Chairman Alan Greenspan. Before the Joint Economic Committee, U.S. Congress. The Federal Reserve Board. October 17, 2001.
· Greenspan, Alan; 2001. Testimony of Chairman Alan Greenspan. Before the
Committee on Financial Services, U.S. House of Representatives. The Federal Reserve Board. July 18, 2001.
Gatsby has many issues of repeating his past instead of living in the present. A common example of this would be his ultimate goal to win Daisy back. He keeps thinking about her and how she seems perfect for him, but he remembers her as she was before she was married to Tom. He has not thought about the fact that she has a daughter, and has been married to Tom for four years, and the history there is between them. The reader cannot be sure of Gatsby trying to recreate the past until the reunion between him and Daisy. This becomes evident when Nick talks to Gatsby about how he is living in the past, specifically when Nick discusses Daisy with him. “‘I wouldn’t ask too much of her,’ Gatsby ventured. ‘you can’t repeat the past.’ I said. ‘Can’t repeat the past?’ he cried incredulously. ‘Why of course you can!’” (110). This excerpt shows how Gatsby still has not learned that eventually he will have to just accept the past and move forward with his life. If he keeps obsessing about Daisy, and trying to fix the past, more of his life will be wasted on this impossible goal. Througho...
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Metzler, Allan H. A History of the Federal Reserve, Vol I and II. University Press Books, 2002
DNA fingerprinting, or sometimes known as DNA typing, is isolating and developing images of sequences of DNA to evaluate the DNA in an individual’s cells. DNA fingerprinting today is used for many different things in many different areas of science. In forensic science, DNA typing can determine which person did which crime by using blood or skin left at a crime scene. In medical science, patients can find out who their siblings, parents, or children are by using DNA fingerprinting (webmd).
One of The Cove main arguments is highlighting how difficult it is to see what really is happening with the dolphins, and how it is blocked from the public. We the viewers are instinctively drawn into this idea with the first line of the documentary being “I want to tell you, we tried to do the story legally”. We feel as if we are going undercover and exposing the truth. Juxtaposition is used with a woman eating dolphin at a Taiji theme park as she watches a dolphin show while Ric O’Barry narrates: “Here in Taiji, you can go to the Whale Museum and watch the dolphin show and eat a dolphin at the same time. They sell dolphin and whale meat right in the dolphinarium. It's the captivity industry that keeps this slaughter going by rewarding the fishermen for their bad behaviour.” Psihoyos intent is to shock the audience and persuade them to question Taiji methods. Blackfish pushes it agenda using archival footage with John Crowe a former orca capturer. Along with archival footage shown of the babies being captured while the rest of the family “communicate back and forth”. “You understand then what you’re doing. I lost it. I started crying…it’s like kidnapping a little kid away from its mother…it’s the worst thing I can think of.” These examples show how documentary filmmakers are very deliberate in how they of live and archival footage showcases how these video are deliberately chosen to further their
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Jenson, Robert. “Religious Traditions Can Play a Healthy Role in Politics.” Politics and Religion 2013: n. pag. Opposing Viewpoints in Context. Web. 30 Mar. 2014.
The Iran Hostage Crisis was a dangerous time period for Americans and held lots of events in it. It took place on November 4, 1997. The location was in Tehran, Iran. The main place things happened was in the embassy. One of the main issues was with the president. That didn’t stop the Americans from being angry and face Moorhead Kennedy. President Carter knew the country was in serious danger. This event in history happen 39 years ago. It was between Iran and the united states. The group mostly consisted of young students. On November 4, 1979 President Cater got a call that 50 to 60 americans had been captured and taken to Iran. There was a total of 500 Iranian students at one point on the street and shouting as if they were celabrating something special. It was not goood shouting, it contained nasty/foul words. Many Iranian students wanted America to fail and many wanted Carter gone. The main cause to this was that President Carter let Iran’s Shah come to the united States for medical help. Americans beleived that letting Shah in was the worst decision because of what he was called. This event led up to the Iran
In the 2011 article ‘The True Meaning of Separation of Church and State’ by Bill Flax, “Faith is no civil contract, but a personal matter not to be profaned by politics.” These are the exact intentions of the US Constitution and the federal government. The goal is to allow citizens religious freedom that is uninhibited by federal regulation. This essay describes the fundamental reasons why faith groups and institutions should not be allowed to form political parties. This will be done by defining what religion is and how it applies to moral living. Second, this essay will cover the US Constitution and why it also defines moral living. Finally it will define why religion and government in the United States do not belong together. This essay is designed to only examine the US government.
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DNA profiling has been one of the biggest advances in technology and science in the 20th century due to its efficiency in the identification of individuals. It is commonly used by forensics scientist for identification of suspects or individuals in crime scenes. DNA profiling as it is today, was developed by two independent studies in molecular biology that occur during the same period of time, in two different places, and by two different scientists. In 1985, Alec Jeffreys developed a technique called DNA fingerprinting, which has been known as DNA profiling. And Kary Mullis invented the polymerase chain reaction which is a biochemical technology in molecular biology used to amplify one single sample of DNA across many orders of magnitude generating millions of copies of an specific DNA sample.
Ritter, Lawrence R., Silber, William L., Udell, Gregory F. 2000, Money, banking, and Financial Markets, 10th edn, USA.
The Social Studies Help Center (n.d.). Monetary and Fiscal Policy. Retrieved November 5, 2011, from http://www.socialstudieshelp.com/eco_mon_and_fiscal.htm
These shareholders are represented by the Board of Governors. The Board is the main decision-making body, determines the policy of the World Bank. The member countries are represented on the Governing Board, usually Finance Ministers. The Governing Council meets once a year during the Annual Meetings of the Boards of Governors of the World Bank and the International Monetary
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