What should the FED do

What should the FED do - What should the FED do?...

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What should the FED do? Directions: Please read the following very recent information and then pretend that you are the FED Chairmen and message me what you would you recommend the FED do in terms of Monetary policy? (20 points) Each month, the Bureau of Economic Analysis (BEA), an agency of the U.S. Department of Commerce, releases an estimate of the level and growth of U.S. gross domestic product (GDP), the output of goods and services produced by labor and property located in the United States. Here are the BEA's "second estimate" of real GDP released on February 26, 2010, for the fourth quarter (October-December of 2009.) Understanding the level and rate of growth of the economy's output (GDP) helps to better understand growth, employment trends, the health of the business sector, and consumer well-being. Here's the headline: "U.S. Economy Grows at a 5.9% Rate" The Bureau of Economic Analysis' announcement about real GDP growth in late 2009 seemed like very good news. The U.S. economy grew at an annualized rate of 5.9 percent from October through December. Given the real GDP declines of much of the previous two years, was this evidence that the recession is over? Using GDP as an indicator that some people feel identifies a recession, maybe it is over. Then again, the National Bureau of Economic Research uses much more than simple GDP growth to identify the
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What should the FED do - What should the FED do?...

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