Monetary Policy Reports
The Federal Development Committee plays a is vital role creation of policies to curb the economic crisis in the country. There is also manipulation of the economic activities to ensure growth and stability in the country. According to report 1 and report 2, there are the latest developments initiated to ensure growth and creation of an effective working environment. According to Report 1, in line with Section 2B of the Federal Reserve Act, there were developments to enhance employment creation and reduction of unemployment through labor creation, as seen below.
The policy actions entailed the creation of a better working environment through the provision of low-cost capital to enhance the flow of money in the economy. There was also a reduction of interest rates and cost of borrowing, hence economic stimulation. The outcome was strengthening the labor market. There were also payroll employment gains due to economic policies.
There was also the implementation of monetary policy based on open market regulations and the supply of reserves. The board with the governor introduced measures to enhance the flow of money through open market regulations. The impact was felt on the purchase of treasury bills and treasury bonds. There was hence money flow in the economy. The other vital move was the reduction of the aggregate securities holdings with a view of enhancing economic growth. The policy entailed lowering the federal funds rate through the System Open Market Account (The Fed – Monetary Policy: Monetary Policy Report, 2020). The above measures are vital in the control and management of economic growth.
Lastly, there is robust economic growth, according to the Fed’s opinion. There was the inclusion of a sound economic environment through the use of the affordable cost of capital and flow of capital through the banking industry (Federal Reserve Board – Monetary Policy Principles and Practice, 2020). Some of the vital models entailed the inclusion of lower rates of reserves to increase the money supply in the market. According to Fed, the economy is improving since the rate of job creation has increased, and rates of unemployment decline. There is also low inflation and an effective supply of resources hence economic growth.
References
Board of Governors of the Federal Reserve System. 2020. The Fed – Monetary Policy: Monetary Policy Report. [online] Available at: <https://www.federalreserve.gov/monetarypolicy/2020-02-mpr-part2.htm> [Accessed 11 May 2020].
Board of Governors of the Federal Reserve System. 2020. Federal Reserve Board – Monetary Policy Principles And Practice. [online] Available at: <https://www.federalreserve.gov/monetarypolicy/monetary-policy-principles-and-practice.htm> [Accessed 11 May 2020].