| FOMC Meeting on Tuesday and Wednesday, October 31 and Nov. 1, 2023 |
"Effective November 1, 2023, the Federal Open
Market Committee (FOMC) directs the Desk to:
In support of these goals (maximum employment
and inflation rate of 2% over the long run) the
Committee decided 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:
In support of these goals (maximum employment
and inflation rate of 2% over the long run) the
Committee decided 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 November 2, 2023."
Federal Reserve System voted unanimously to maintain
the Interest Rate on Reserve Balances (IOR) to 5.4
percent, effective November 2, 2023."
The Policy Rate is the Federal Funds Rate.
Interest Rate on Reserve Balances (IOR) is the
MOST IMPORTANT TOOL OF MONETARY POLICY!
MOST IMPORTANT TOOL OF MONETARY POLICY!
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 5.5 percent."
Governors of the Federal Reserve System voted unanimously
to approve the establishment of the Primary Credit Rate at
the existing level of 5.5 percent."
Administered Rate #2: Administered Rate #3: "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)
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| Videos from the Federal Reserve Bank of St. Louis |
Closing a
Recessionary
Gap or a
Negative
Output
Gap
Using
Expansionary
Monetary Policy
Recessionary
Gap or a
Negative
Output
Gap
Using
Expansionary
Monetary Policy
| Town Hall Meeting with Jerome Powell (November 1, 2023) |
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November 1, 2023
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.
| Expansionary Monetary Policy Flow Chart with REFF® GRAPH and ASAD GRAPH #1 |
A special thank you goes to The Council on Economics Education (CEE) for accepting my proposal to speak
at the 62nd Financial Literacy & Economic Education Conference in Fort Lauderdale, Florida. Another special
thank you goes to the Foundation for Economics Education (FEE), established in 1946, that provided funding
for me to present.
at the 62nd Financial Literacy & Economic Education Conference in Fort Lauderdale, Florida. Another special
thank you goes to the Foundation for Economics Education (FEE), established in 1946, that provided funding
for me to present.
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| Contractionary Monetary Policy Flow Chart with REFF® GRAPH and ASAD GRAPH #2 |
| FOMC Statement (November 1, 2023) |
| REFFONOMICS® BASEBALL -- Ample Reserves Regime for On-Level H.S. Economics |
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| Board of Governors Implementation Notes (November 1, 2023) |
| Expansionary Monetary Policy Flow Chart with REFF® AR GRAPH and ASAD GRAPH. |
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Closing an
Inflationary
Gap
or a
Positive
Output
Gap
with
Contractionary
Monetary
Policy
Inflationary
Gap
or a
Positive
Output
Gap
with
Contractionary
Monetary
Policy
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| FRED Graphs Showing the 3 Administered Rates (November 1, 2023) |
Since March 2020, the Federal Reserve has aligned the
Primary Credit Rate with the Federal Funds Target Range
Upper Limit set by the FOMC. The Board of Governors
thus sets the administered Primary Credit Rate equal to
the Upper Limit of the Federal Funds Target Range. The
Primary Credit Rate is a ceiling rate for the Federal Funds
Rate (FFR).
rate
Primary Credit Rate with the Federal Funds Target Range
Upper Limit set by the FOMC. The Board of Governors
thus sets the administered Primary Credit Rate equal to
the Upper Limit of the Federal Funds Target Range. The
Primary Credit Rate is a ceiling rate for the Federal Funds
Rate (FFR).
rate
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