Fed

Chairman of the Federal Reserve

The Chairman of the Fed is the head of the central banking system of the United States and one of the most important decision-makers in American economic policies. Use the links provided to answer the questions below about the Chairman of the Fed:

• How does the Chairman become appointed?
• What is his term of office?
• What are his responsibilities?
• Who is Alan Greenspan? Why is he important?
• How important is the position of Chairman of the Federal Reserve?

Links for information:
http://www.federalreserve.gov/pubs/frseries/frseri.htm
http://www.federalreserve.gov/pubs/frseries/frseri3.htm
http://www.federalreserve.gov/pubs/frseries/frseri4.htm



Federal Open Markets Committee (FOMC)

The FOMC is charged with overseeing open market operations in the United States, and is the principal tool of US national monetary policy. Use the links provided to find the information below:

• Who sits on the FOMC?
• What is the importance of the FOMC?
•  How do they influence the monetary policy?
• What are the three tools for controlling the money supply?
• Which tool is used the most?
• What is the goal of the FOMC?
• How does the FOMC impact the economy?

Links for information:
http://www.federalreserve.gov/policy.htm
http://www.federalreserve.gov/fomc/
http://www.federalreserve.gov/pubs/frseries/frseri2.htm

Application

Use the internet to locate an article describing the Fed’s use of monetary policy to manipulate the economy. Read the article and complete the following questions:

• Write a one paragraph summary of the article
• What tool of moetary policy is being used by the Fed in this article?
• What is the Fed hoping will happen as a result? Describe in some detail using your knowledge of economics.