Federal funds rate

1. In America 45 million under poverty line and over 5%unemployment rate, First thing I would advise to USA President is to Increase the minimum wage rate to atleast 9$ , guaranteed paid leave to new parents, More free for h1b visas and more taxes for richer. These decisions will have long term effects on the economy and we can see redistribution of income from richer to poorer in short time. All this combined with more government expenditure would help the US economy. 2. Fiscal policy is considered

system, the auto industry, and the housing markets during the 2008 financial crisis. Essentially, the U.S. Treasury guaranteed money market funds, provided capital to over 700 banks, and provided a bailout to AIG to avoid a widespread collapse in the financial industry. Investors and consumers had lost faith in the financial system and were pulling their funds out in record numbers; panic was spreading as Americans were speculating this could be the next big depression. It was essential for the U

Net worth-to-Asset ratios |  |Net Worth |Assets |NW/A | |Virginia Federal |950 |14000 |0.068 | |Southland Financial |2020 |35000 |0.058 | |Texas Federal |1130 |24000 |0.047 | |Great Southern Financial |1400

do it again.” Ben Bernanke, November 8, 2002, in a speech given at “A Conference to Honor Milton Friedman … On the Occasion of His 90th Birthday.” In 2002, Ben Bernanke, then a member of the Federal Reserve Board of Governors, acknowledged publicly what economists have long believed. The Federal Reserve’s mistakes contributed to the “worst economic disaster in American history” (Bernanke 2002). Bernanke, like other economic historians, characterized the Great Depression as a disaster

accrued federal government deficits, the deficits are referred to as the national debt. A budget deficit is recognized, current expenses exceed the amount of income being received through standard operations. To correct a budget deficit, the nation may need to cut back on certain expenses or increase revenue-generating activities, or employ a

the housing bubble burst, the main contributor was due to the correction of the Fed Fund interest rates. When interest rates began to increase the home sales decreased, the housing price crashed- meaning that the value of the homes spiral to all time low. The mortgages on millions of homes became worth more that home itself, this cause many homeowners to default of payments and foreclosure roused at an alarming rate. With the massive defaults devastating the markets it undermined Wall Street’s financial

The Federal Reserve is in a whole the central bank of the United States. Congress created it to maintain the American monetary system. This keeps everything in check and makes the US dollar maintain a steady but healthy inflation rate. Woodrow Wilson signed the Federal Reserve Act into law on December 23, 1913 which put a new system of government to work, The US Treasury. The President always appoints the member of the Reserve, from members who are confirmed by the senate. The current members

restrict federal spending to the sum of its collected revenues in any given fiscal year. The “Balanced Budget Amendment” would’ve taken full effect in 2002, guaranteeing a balanced federal budget unless a budgetary deficit was approved by two thirds of the Senate . The proposed amendment passed the House of Representatives but came up one vote short in the senate. More than two decades later, the US budget remains an incendiary topic; Total federal debt exceeds $15 Trillion dollars and the Federal Budget

to obtain at the Fed's markdown window (Federal Reserve, 2009). The second set of tools which involve the provision of liquidity directly to borrowers and investors in key credit markets. In this the government has introduced advantages to buy profoundly evaluated business paper at a term of three months and to give reinforcement liquidity for money market mutual funds (Federal Reserve, 2009).Also, the Federal Reserve and

world, and vice versa. The Federal Reserve (the Fed) has always reacted accordingly, though at times more appropriately than others. Along with other tools, the Fed relies heavily on the adjustment of the Fed fund rate through the Federal Open Market Committee (FOMC). This is the