| The REFF® Ample Reserves Graph next to FRED® Graph |
| Expansionary Monetary Policy Flow Chart with REFF® AR GRAPH and ASAD GRAPH. |
| FOMC Meeting on Tuesday, April 31 and Wednesday, May 1, 2024 |
| Contractionary Monetary Policy Flow Chart with REFF® GRAPH and ASAD GRAPH #1. |
| The REFF® Graph |
| REFFONOMICS® BASEBALL -- Ample Reserves Regime for On-Level H.S. Economics |
| next to a FRED® graph. |
"Effective December 13, 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.
| Expansionary Monetary Policy Flow Chart with REFF® GRAPH and ASAD GRAPH #1 |
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 May 2, 2024."
Federal Reserve System voted unanimously to maintain
the Interest Rate on Reserve Balances (IOR) to 5.4
percent, effective May 2, 2024."
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 . . .
Closing a
Recessionary
or a
Negative
Output
Gap
Recessionary
or a
Negative
Output
Gap
Closing an
Inflationary
or a
Positive
Output
Gap
Inflationary
or a
Positive
Output
Gap
| Contractionary Monetary Policy Flow Chart with REFF® GRAPH and ASAD GRAPH #2 |
| Expansionary Monetary Policy Flow Chart with REFF® GRAPH and ASAD GRAPH #2. |
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 |
| FOMC Press Conference with Jerome Powell (May 1, 2024) |
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.
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.
| Other On-Level High School Economics Links of Interest: |
| AP Macroeconomics Graphing and Flow Charts |
| AP Macroeconomics Ample Reserves Curriculum Lessons |
| AP Macroeconomics Teacher Knowledge |
| On-Level High School Ample Reserves Curriculum Lessons (below this curriculum is the AP Macroeconomics Ample Reserves Curriculum) |
| Past FOMC Meeting Press Releases: |
May 1, 2024
| Administered Rate #1: PRIMARY TOOL Interest on Reserve Balances (IORB or IOR) 5.4% |
| FOMC -- FFR Target Range 5.25% - 5.50% |
| Administered Rate #2: FOMC -- Interest on ON RRP 5.3% High School Students do NOT have to know this rate. |
| Administered Rate #3: Primary Credit Rate (formerly called the Discount Rate) 5.5% |
The effective federal funds rate (policy rate) has remained within
the target range -- lower limit of 5.25% and the target range upper
limit of 5.5% since July 29, 2023.
the target range -- lower limit of 5.25% and the target range upper
limit of 5.5% since July 29, 2023.