Assignment: Headline News Article
Article: "Here's what the stock market liked from the Fed" by Andrew Harrer.
Here's an interesting headline news article for class discussion during this module week, to help us learn more about some of the principles of economics and their many uses. The article is about how the stock market reacted to a post-meeting statement on June 19, 2019, by the Federal Open Market Committee of the Federal Reserve, which controls U.S. monetary policy.Here are some reflection questions to help guide our class discussion. By Tuesday, answer any reflection question. By Sunday, constructively comment on two answers by other students to the reflection questions.
1. What important U.S. Government policy does the Federal Reserve control?
2. What U.S. monetary policy tool does the Federal Open Market Committee (FOMC) control?
3. What is the primary U.S. monetary policy target of the FOMC's open market operations?
4. In its post-meeting announcement on June 19, 2019, what did the Federal Reserve (i.e., the Fed) suggest it would do in the near future?
5. What is the federal funds rate?
6. When the Fed announces that it will reduce the federal funds rate (FFR), what effect does that have U.S. market interest rates?
7. What short-run effects does an expansionary U.S. monetary policy have on the U.S. economy?
8. What long-run effect does an expansionary U.S. monetary policy have on the U.S. economy?
9. If the Fed did switch from a contractionary U.S. monetary policy to an expansionary policy in mid-2019, would that be an efficiency improvement for the U.S. economy? Discuss.
10. Create your own question related to this article, then answer it.
Format your assignment according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.