Please write a one-page report on how the Federal Reserve (the Fed) actions through the decisions by Federal Open Market Committee (FOMC) on monetary policy would influence U.S. economy in the next 12-24 months. Make sure you cover the following sections (and label them properly):
The fundamental theory of monetary policy
The implications to consumers on rising interest rates.
The implications to producers on rising interest rates.
The potential threats and costs of high interest rates (and how high of Fed Fund Rate would be too high, in this low interest rate era).
The maximum point you may earn from this assignment is the lower of (1) the points you missed on Exam 4 or (2) 30 points.
For example, if you had 60 on exam 4 (missed 40 points), you can earn up to 30 points.
If you had 85 on exam 4 (missed 15 points), you can earn up to 15 points.
The grade will be determined by the completeness of your response to each of the 4 areas above and your writing (including, but not limited to, spelling, clarity, grammar, punctuation, and flow).
Your report is limited to 1 page with 1.5 line space, 12 pt, Times New Roman font (roughly 350-450 words total).
Please submit your work in either .docx or .pdf format. Other format of works will not be accepted. You have only 1 attempt in submission. Make sure you send in the correct file.
An article for your reference: How high will central banks go.docx
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