| FOMC Meeting on Tuesday and Wednesday, September 19 and 20, 2023 |
"Effective September 20, 2023, the Federal Open
Market Committee (FOMC) directs the Desk to:
Undertake open market operations as necessary to
maintain the federal funds rate in a target range
of 5-1/4 to 5-1/2 percent.
Market Committee (FOMC) directs the Desk to:
Undertake open market operations as necessary to
maintain the federal funds rate in a target range
of 5-1/4 to 5-1/2 percent.
Administered Rate #1: "The Board of Governors of the
Federal Reserve System voted unanimously to maintain
the Interest Rate on Reserve Balances (IOR) to 5.4
percent, effective September 21, 2023."
Federal Reserve System voted unanimously to maintain
the Interest Rate on Reserve Balances (IOR) to 5.4
percent, effective September 21, 2023."
The Policy Rate is the Federal Funds Rate.
A special thank you goes to the Foundation for Economics Education, established in 1946, that sponsored me as an
outside consultant to attend the 62nd Financial Literacy & Economic Education Conference to present today. FEE.org
provides "FREE" economics curriculum for teachers to use inside and outside their classrooms at: teachers.fee.org .
outside consultant to attend the 62nd Financial Literacy & Economic Education Conference to present today. FEE.org
provides "FREE" economics curriculum for teachers to use inside and outside their classrooms at: teachers.fee.org .
Administered Rate #3: "In a related action, the Board of
Governors of the Federal Reserve System voted unanimously
to approve the establishment of the Primary Credit Rate at
the existing level of
5 percent."
Governors of the Federal Reserve System voted unanimously
to approve the establishment of the Primary Credit Rate at
the existing level of
5 percent."
Administered Rate #2: Administered Rate #2: "The FOMC
directs the desk to: Conduct standing Overnight Reverse
Repurchase Agreement (ON RRP) operations at an offering
rate of 5.3 percent . . .
directs the desk to: Conduct standing Overnight Reverse
Repurchase Agreement (ON RRP) operations at an offering
rate of 5.3 percent . . .
Economics Low Down Video Series, Part I
Ample Reserves Videos by Jane Ihrig and Scott Wolla (Only Use Parts 1 and 2)
Ample Reserves Videos by Jane Ihrig and Scott Wolla (Only Use Parts 1 and 2)
| Videos from the Federal Reserve Bank of St. Louis |
| Town Hall Meeting with Jerome Powell (September 28, 2023) |
September 20, 2023
| Minimize Your Screen to 75% |
Interest Rate on Reserve Balances (IOR) is the
MOST IMPORTANT TOOL OF MONETARY POLICY!
MOST IMPORTANT TOOL OF MONETARY POLICY!
Interest Rate on Overnight Reverse Repurchase
Agreements (ON RRP) -- High School Students will NOT be
tested on this administered rate.
Agreements (ON RRP) -- High School Students will NOT be
tested on this administered rate.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Closing a
Recessionary
Gap or a
Negative
Output
Gap
Using
Expansionary
Monetary Policy
Recessionary
Gap or a
Negative
Output
Gap
Using
Expansionary
Monetary Policy
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| Expansionary Monetary Policy Flow Chart with REFF® GRAPH and ASAD GRAPH #1 |
| Contractionary Monetary Policy Flow Chart with REFF® GRAPH and ASAD GRAPH #2 |
| REFFONOMICS® BASEBALL -- Ample Reserves Regime for On-Level H.S. Economics |
| Expansionary Monetary Policy Flow Chart with REFF® AR GRAPH and ASAD GRAPH. |
Closing an
Inflationary
Gap
or a
Positive
Output
Gap
with
Contractionary
Monetary
Policy
Inflationary
Gap
or a
Positive
Output
Gap
with
Contractionary
Monetary
Policy
| Follow the Directions below the Flow Chart |
| Follow the Directions below the Flow Chart |