| FOMC Meeting on Tuesday and Wednesday, September 17 and 18, 2024 |
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 (September 18, 2024) |
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.
| Past FOMC Meeting Press Releases: |
"Effective September 19, 2024, the Federal Open Market
Committee (FOMC) directs the Desk to:
The Committee has gained greater confidence that
inflation is moving sustainably toward 2 percent, and
judges that the risks to achieving its employment and
inflation goals are roughly in balance. The economic
outlook is uncertain, and the Committee is attentive
to the risks to both sides of its dual mandate.
In light of the progress on inflation and the balance of
risks, the Committee decided to lower the target range
for the federal funds rate by 1/2 percentage point
to 4-3/4 to 5 percent.
Committee (FOMC) directs the Desk to:
The Committee has gained greater confidence that
inflation is moving sustainably toward 2 percent, and
judges that the risks to achieving its employment and
inflation goals are roughly in balance. The economic
outlook is uncertain, and the Committee is attentive
to the risks to both sides of its dual mandate.
In light of the progress on inflation and the balance of
risks, the Committee decided to lower the target range
for the federal funds rate by 1/2 percentage point
to 4-3/4 to 5 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 4.9
percent, effective September 19, 2024."
Federal Reserve System voted unanimously to maintain
the Interest Rate on Reserve Balances (IOR) to 4.9
percent, effective September 19, 2024."
The Policy Rate is the Federal Funds Rate.
Administered Rate #3: "In a related action, the Board of
Governors of the Federal Reserve System voted unanimously
to approve a 1/2 percentage point decrease in the Primary
Credit Rate cut to 5 percent, effective September 19, 2024.
Governors of the Federal Reserve System voted unanimously
to approve a 1/2 percentage point decrease in the Primary
Credit Rate cut to 5 percent, effective September 19, 2024.
Administered Rate #2: "The FOMC directs the desk to:
Conduct standing Overnight Reverse Repurchase
Agreement (ON RRP) operations at an offering rate of 4.8
percent . . .
Conduct standing Overnight Reverse Repurchase
Agreement (ON RRP) operations at an offering rate of 4.8
percent . . .
Interest Rate on Overnight Reverse Repurchase
Agreements (ON RRP) -- AP Macroeconomics students
will NOT be tested on this administered rate.
Agreements (ON RRP) -- AP Macroeconomics students
will NOT be tested on this administered rate.
September 18, 2023
The Primary Credit Rate used to be called the Discount
Rate, but that changed in 2003.
Rate, but that changed in 2003.
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Interest Rate on Reserve Balances (IOR) is the
MOST IMPORTANT TOOL OF MONETARY POLICY!
MOST IMPORTANT TOOL OF MONETARY POLICY!
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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 |