Chapter 17, Problem 1WE

To determine

(a)

The last meeting and the next scheduled meeting of the Federal Open Markets Committee.

Introduction:

The Federal Open Market Committee (FOMC) implements monetary policy for the Federal Reserve System, which is the central bank of U.S.A. The FOMC last met on the 1^st and 2^nd of May, 2018.

To determine

(b)

The press release of the last meeting and main points of discussion about short term interest rates.

To determine

(c)

Press release for the last meeting and highlight of the economic activities that concern the committee members the most.

Introduction:

Short term rates are those interest rates which are levied on loan contracts and debtor instruments like Treasury bills or another type of commercial paper that has a maturity period of less than one year.