Federal Reserve Board and Federal Open Market Committee Release Economic Projections

Topics: Monetary policy, Federal Reserve System, Inflation Pages: 2 (657 words) Published: July 28, 2013
Federal Reserve Board and Federal Open Market Committee Release Economic Projections Summary
On June 19th, the Federal Reserve Board and Federal Open Market Committee (FOMC) released details of the monetary policy action to intervene the economy. What the FOMC promises to seek are price stability and continued rise in employment. Expectations are that the economy will continue to grow and the unemployment rate will decrease. Nevertheless, the Committee is aware of the actual risk that the economy and the reduction in the labor market presents. Unemployment: the expectation is that the employment will increase; to assure that this will happen the Committee posture is to keep an accommodative monetary policy for supporting the economic recovery. Inflation: In advance, the FOMC knows that inflation will be no greater than or equal to 2%. But to assure that in the future the inflation rate will be steadier the FOMC has decided to continue purchasing forty billion each month of additional agency mortgage-backed securities and forty-five billion each month of longer-term Treasury securities, and to keep the actual policy for reinvestments. The committee hopes that these measures will keep “downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative”. Analysis

The organization that I chose is a Nonprofit Organization in which I was working some time ago; its name is “Franciscan Outreach Association” (FOA) and its primary focus is on serving the poor providing a variety of services. The FOA’s revenues come from individual donations, will and bequest, private grants, Government grants, fundraising events, and other occasional donations. Services offered by the FOA are:

o Overnight shelter: the FOA has two shelters, one that is located in Harrison which has 257 beds and another shelter called the annex which has 65 beds. These shelters have separate dormitories for women and men and it is...
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