Expert Answer:Read Monetary, and answer questions.

Answer & Explanation:Read the attached FOMC press. Write a short essay addressing the following questions:o What are the monetary policy implementation decisions they made in this meeting?o What are the justifications to make the decisions? That is, what are the reasons they give to implement the monetary policy changes?o What tools they will use through the Open Market Desk to implement the policy change? Give some details about their directions to the Desk.o How do you expect the stock market to respond to the news? Check what are the open and close prices of the main stock price indices (NASDAQ, S&P500, Dow Jones) on that day. Is the change consistent with your anticipation? Explain why.Do NOT commit plagiarism!The essay should be written in a Word file within 1 page, andusing 12-point Times New Roman font, single-line spacing, normal margins and justify text. Failure to follow the rules will impact your score negatively.
monetary20191030a1.pdf

Unformatted Attachment Preview

For release at 2 p.m. EDT
October 30, 2019
Information received since the Federal Open Market Committee met in September
indicates that the labor market remains strong and that economic activity has been rising at a
moderate rate. Job gains have been solid, on average, in recent months, and the unemployment
rate has remained low. Although household spending has been rising at a strong pace, business
fixed investment and exports remain weak. On a 12-month basis, overall inflation and inflation
for items other than food and energy are running below 2 percent. Market-based measures of
inflation compensation remain low; survey-based measures of longer-term inflation expectations
are little changed.
Consistent with its statutory mandate, the Committee seeks to foster maximum
employment and price stability. In light of the implications of global developments for the
economic outlook as well as muted inflation pressures, the Committee decided to lower the
target range for the federal funds rate to 1-1/2 to 1-3/4 percent. This action supports the
Committee’s view that sustained expansion of economic activity, strong labor market conditions,
and inflation near the Committee’s symmetric 2 percent objective are the most likely outcomes,
but uncertainties about this outlook remain. The Committee will continue to monitor the
implications of incoming information for the economic outlook as it assesses the appropriate
path of the target range for the federal funds rate.
In determining the timing and size of future adjustments to the target range for the federal
funds rate, the Committee will assess realized and expected economic conditions relative to its
maximum employment objective and its symmetric 2 percent inflation objective. This
assessment will take into account a wide range of information, including measures of labor
market conditions, indicators of inflation pressures and inflation expectations, and readings on
financial and international developments.
(more)
For release at 2 p.m. EDT
October 30, 2019
-2Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams,
Vice Chair; Michelle W. Bowman; Lael Brainard; James Bullard; Richard H. Clarida; Charles L.
Evans; and Randal K. Quarles. Voting against this action were: Esther L. George and Eric S.
Rosengren, who preferred at this meeting to maintain the target range at 1-3/4 percent to
2 percent.
-0-
For release at 2 p.m. EDT
October 30, 2019
Decisions Regarding Monetary Policy Implementation
The Federal Reserve has made the following decisions to implement the monetary policy stance
announced by the Federal Open Market Committee in its statement on October 30, 2019:

The Board of Governors of the Federal Reserve System voted unanimously to lower
the interest rate paid on required and excess reserve balances to 1.55 percent,
effective October 31, 2019.

As part of its policy decision, the Federal Open Market Committee voted to authorize
and direct the Open Market Desk at the Federal Reserve Bank of New York, until
instructed otherwise, to execute transactions in the System Open Market Account in
accordance with the following domestic policy directive:
“Effective October 31, 2019, the Federal Open Market Committee directs the
Desk to undertake open market operations as necessary to maintain the federal
funds rate in a target range of 1-1/2 to 1-3/4 percent. In light of recent and
expected increases in the Federal Reserve’s non-reserve liabilities, the Committee
directs the Desk to purchase Treasury bills at least into the second quarter of next
year to maintain over time ample reserve balances at or above the level that
prevailed in early September 2019. The Committee also directs the Desk to
conduct term and overnight repurchase agreement operations at least through
January of next year to ensure that the supply of reserves remains ample even
during periods of sharp increases in non-reserve liabilities, and to mitigate the risk
of money market pressures that could adversely affect policy implementation. In
addition, the Committee directs the Desk to conduct overnight reverse repurchase
operations (and reverse repurchase operations with maturities of more than one
day when necessary to accommodate weekend, holiday, or similar trading
conventions) at an offering rate of 1.45 percent, in amounts limited only by the
value of Treasury securities held outright in the System Open Market Account
that are available for such operations and by a per-counterparty limit of
$30 billion per day.
The Committee directs the Desk to continue rolling over at auction all principal
payments from the Federal Reserve’s holdings of Treasury securities and to
continue reinvesting all principal payments from the Federal Reserve’s holdings
of agency debt and agency mortgage-backed securities received during each
calendar month. Principal payments from agency debt and agency mortgagebacked securities up to $20 billion per month will continue to be reinvested in
Treasury securities to roughly match the maturity composition of Treasury
securities outstanding; principal payments in excess of $20 billion per month will
continue to be reinvested in agency mortgage-backed securities. Small deviations
from these amounts for operational reasons are acceptable.
(more)
For release at 2 p.m. EDT
October 30, 2019
-2-
The Committee also directs the Desk to engage in dollar roll and coupon swap
transactions as necessary to facilitate settlement of the Federal Reserve’s agency
mortgage-backed securities transactions.”

In a related action, the Board of Governors of the Federal Reserve System voted
unanimously to approve a 1/4 percentage point decrease in the primary credit rate to
2.25 percent, effective October 31, 2019. In taking this action, the Board approved
requests to establish that rate submitted by the Boards of Directors of the Federal
Reserve Banks of Minneapolis and San Francisco.
This information will be updated as appropriate to reflect decisions of the Federal Open Market
Committee or the Board of Governors regarding details of the Federal Reserve’s operational tools
and approach used to implement monetary policy.
More information regarding open market operations and reinvestments may be found on the
Federal Reserve Bank of New York’s website.

Purchase answer to see full
attachment

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more