Federal Reserve Paper

national Reserve Paper Alex Layer Macroeconomics On October 23 and 24 the catereral Reserve Open Market Committee held a concourse to discuss what they need to do or continue to do to deliver the prudence. According to the avouchment consumer spending has increased, but investment in companies has go along to decrease. They also said that inflation has increased which causes energy costs to go up, but the expectations are looking good. The Fed decided that continuing to taint securities would be a good idea since they are trying to light the long-term interest rates.Their innovation is to continue purchasing these mortgage plump for securities until the labor markets improve. They leave also plan on purchasing more than assets if that is the case. The Committee wants to continue extending the prop of Treasury securities, and it is keeping the policy of reinvesting mind payments from the holding of agency debt and agency mortgage-backed securities. Their goal by doing t his is to keep the Federal funds rate between 0 and . 25%. All of this get out increase securities held in the long run. They influence the interest rates by buying securities through open market operations.The Committee decided that the economy is getting better but too slowly so that is why they decided to take these actions to try and increase the speed. According to The New York time article , they want to max out employment and price stability, which will help stimulate the economy. After reading the Committees statement I have concluded that they are using expansionary policies or tripping money policies. I figured they are doing this since they are buying and holding their securities in an attempt to raise the aggregate claim.I do agree with what the Fed is planning to do in an attempt to stimulate the economy. I this it is a good idea since our economy is still in somewhat of a slump to use the easy money policies to increase the aggregate demand by changing the interest rates. Overall I agree with what they plan to do seeing that it should give us a positive mindset on the economy in the time to come. Sources http//www. nytimes. com/2012/10/25/ vocation/economy/fed-affirms-low-rates-and-sees-moderate-growth. html? hp&_r=1& http//www. federalreserve. gov/newsevents/ electronic jamming/monetary/20121024a. htm