3 PAGES APA FORMAT

Purpose:
The purpose of this assignment is to provide students with an opportunity to develop a short case study and analysis of an issue related to money and banking using concepts and theories learned in class. 

Use the article below and analyze the issue of the Fed cutting interest rates using the economic concepts and the article below.

https://www.nytimes.com/2020/01/03/business/economy/fed-rates-inflation.html


The paper should begin with a concise summary paragraph that (1) states the prob-lem/issue/topic you have selected and (2) summarizes your position on the topic, anticipating your conclusion.  The remainder of the paper should explain and support your position.

Specifications:
Your paper should include:
    A narrative of up to 3 pages (not including title page, reference list, or appendices).
    A title page
    A reference list (using APA forma

NO MORE THAN 4 PARAGRAPHS, APA FORMATTED RESOURCES

Monetary policy in the US, especially the desire to increase interest rates, will have international repercussions. One of these will be to strengthen an already strong dollar. Please discuss the consequences of increasing interest rates on the US economy, taking into consideration the global ramifications.

https://youtu.be/TfGkkhjET60

https://youtu.be/y_ExrQfnbC0

https://youtu.be/LiDZ-TP-h7g

Since the 2007 financial crisis the Feds portfolio of Treasury and mortgage-backed securities has grown tremendously, from $900 to around $4.0 trillion today.  In recent years there has been much discussion about how and how quickly the Fed may begin reducing the size of its balance sheet.  What is the Feds balance sheet?  Whats your take?  Should the balance sheet be smaller?

Please see the links below for some useful background.

https://www.cnbc.com/2017/04/06/fed-balance-sheet-what-happens-why-it-matters-what-could-go-wrong.html

Hopper, L. (2018, July, 11). How the fed is reducing its balance sheetand why. Retrieved from https://www.stlouisfed.org/open-vault/2018/july/how-fed-reducing-balance-sheet

Ng, Michael. Wessel, David. (18, August 2018). The Hutchins Center Explains: The Fed's balance sheet. retrieved from https://www.brookings.edu/blog/up-front/2017/08/18/the-hutchins-center-explains-the-feds-balance-sheet/

https://www.

The Financial Crisis of 2007 2009 was the worst economic downturn since the Great Depression of the 1930s, and like that event had global repercussions and consequences. Also like the earlier crisis there were significant events that were under the control of policy makers that made the 2008 crisis worse, among these were lax banking regulations on home loans, a loosening of regulations that had prevented commercial banks from engaging in speculative behavior more typically reserved for investment banks and hedge funds (see also: The London Whale). Please contribute to our discussion this week by writing on whether the crisis could have been prevented or significantly mitigated by better bank supervision.

https://youtu.be/eD9ry2Lgglw

https://youtu.be/GPOv72Awo68

NO MORE THAN 4 PARAGRAPHS, APA FORMATTED RESOURCES

APA FORMAT ONLY!!


Interest rates are near an all-time low with the prime rate about 5.5% and the Federal Funds rate at 2.4%. This has helped to stabilize and improve the economy over the past several years, and unemployment is now about where it was in 2000, 4%. The Fed is contemplating increasing interest rates in order to forestall potential inflation. If you were an outside advisor to Fed Chair Jerome Powell what advice would you give to him and why?

https://youtu.be/iRouk6ve0uw

https://youtu.be/z0PvKOdhWcg

https://youtu.be/3-x7BLBvsfQ

https://youtu.be/6OPaySgeyds

Please discuss the quantitative easing program that the Federal Reserve operated from 2009 to 2014. What conditions did the Fed say needed to prevail in order to bring the program to a conclusion.

500-750 words


Resources:

https://open.umn.edu/opentextbooks/textbooks/29

http://www.youtube.com/watch?v=ViDrLylsYH4

https://youtu.be/4TihoBfdCe8

https://youtu.be/afDzRqcq3eY

https://youtu.be/blSnLEZe-sI

https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking